Need for Management Theories:
Understanding organisational behaviour and management is done by: experience, researching about the organisation, and look at the research that has already been done. ‘To prepare for the future, it is useful to know what has gone and what has and has not been successful.’[1 p5]
Historic Foundation of Management And OB Theories:
Schools of Management Thought:
Classical – Taylor, Fayol – Authority, Technical, Competence and Discipline.
Human Relations – Mayo Maslow – Social attitudes, relationships and work groups,
Systems – Barnard – Social, Technical, Integration of human relations and classical
Contingency – It all depends. No one way is the best way. Variables taken into account.
Taylor – Apply scientific methods to increase productivity. Concentrated on matching skilled people to the right job and then planning to increase the production.
Fayol extended the idea to an entire organisation. And he gave the first text for management principles.
He viewed business as a composite of six subsystem – purchasing, production, sales, finance, accounting and administration.
To handle the subsystems , he described five management functions [1 p9]
Planning – studying the future,forecasting, setting goals, and determining course of action
Organising – designing a structure that uses every available resources
Coordinating – uniting activities in the organisation where everyone are given the right resources
Directing – engaging people, motivating them
Controlling – ensure that plan of action is maintained.
These five functions were covered with 14 principles of administrative management.[1 p10]
Division of Work
Authority and responsibility
Unity of command
Unity of direction
Subordination of individual interest to the general interest
Stability of tenure
Unity is strength
The traditional theories viewed the employees as a passive, lacking in direction and motivation. They assumed the employees where motivated only by monetary benefits. ‘But hardship of Great depression, enactment of progressive legislation on social security, pay and working hours and an intellectual climate that raised the social consciousness shifted the focus form rational-economic picture to a more social behavioural perspective.’ [1 p11]
Hawthorne’s work which later came to be known as Hawthorne effect states that when people where paid more attention, their behaviour changed.[1 p12] This led to the shift of management paradigm from largely mechanistic point of view to more human relations oriented one.
Did any of the group use scientific principles such as task specialisation and division of labour?
What are the effects of different goal setting conditions on the performance of task?
The psychology of people in an organisation
Chapter 6: Selection And Assessment
Three paradigms of Assessment: