What is the purpose of management theory? Explain how knowledge to understanding of management theories can help you in your work; use example to illustrate your answer where possible.

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What is the purpose of management theory? Explain how knowledge to understanding of management theories can help you in your work; use example to illustrate your answer where possible.

Throughout the past century, a number of management theories have been developed which help us to understand and explain the structure of, and behavior in organizations. The history of management thought is been tracked back in one form or another, can be traced back thousands of years. However, the systematic development of management thinking is viewed, generally, as dating from the end of the nineteenth century with the emergence of large industrial organizations, and ensuing problems associated with the structure of management. The study of organization and management is the development of management thinking and what might be termed management theory. The application of theory brings about change in actual behavior. However, McGregor puts it:

 ‘Every managerial act rests on assumptions, generalizations, and hypotheses. That is to say, on theory. Our assumptions are frequently implicit, sometimes quite unconscious, often conflicting; nevertheless, they determine our predictions that if we do a, b will occur. Theory and practice are inseparable’.

It is also important to remember that management theory is not an end in itself, but rather a tool to enable us to understand management practice, and to increase the effectiveness. Management theories may be viewed as attempts to find a set of principles to guide the performance of management roles into being effective and efficient.

The importance of management theory is because:

  • What leading writers say is an important part of the study of management;
  • It is necessary to view the interrelationships between the development of theory, behavior in organizations and management practice;
  • An understanding of the development of management thinking helps in understanding principles underlying the process of management;
  • Knowledge of the history helps in understanding the nature of management and organizational behavior, and reason for the attention given to main topic areas;
  • Many of the earlier ideas are of continuing importance to the manager and later ideas on management tend to incorporate earlier ideas and conclusions.

Although the management practices go back several thousand years, the development of management as a field of knowledge is much more recent. Much of the imputes for developing management theories and principles stemmed from the industrial revolution, which spawned the growth of factories in the early 1800s. With the proliferation of factories came the widespread need to coordinate the efforts of large numbers of people in the continual production of goods.

This challenge brought forth a number of individuals who began to think about innovative ways to run factories more effectively. This group, known as the preclassical contributors to management, they focused largely on particular techniques that might be applied to solve specific problem (see figure 1). They were followed by individuals who began to develop broader principles and theories that became the bases of classical management.

                          Figure 1: Development of Management Theory

Classical approach is a perspective on management that emphasizes finding ways to manage work and organization more efficiently. It is made up of three different approaches that are scientific management, administrative management, and bureaucratic management. This approach is labeled ‘classical’ because encompasses early works and related contributions that have formed the main roots of the field of management.

Scientific Management

Scientific management is an approach within classical management theory that emphasizes the scientific study of work methods in order to improve worker efficiency. The central message of scientific management was (and is) that, through scientific problem solving, organizations can be made more efficient and rational. Its primary focus was on how each job and task in an organization could be performed better. The three contributors to the scientific management would include Frederick Winslow Taylor, Frank and Lillian Gilberth, and Henry Gantt.

Frederick W. Taylor

Frederick W. Taylor (1856 – 1915) is known as “the father of scientific management.” He acquired his practical experience in the American Steel industry and went on to become a management consultant. Taylor believed that in the same way that there is a best machine for each job, so there is a best working method by which people should undertake their jobs. He considered that all work processes could be analysed into discrete tasks and that by scientific method it was possible to find the ‘one best way’ to perform each task. Each job was broken down into components parts, each part timed, and the parts rearranged into the most efficient method of working. Taylor was a believer that if management acted on his ideas, work would become more satisfying and profitable for all concerned. Workers would be motivated by obtaining the highest possible wages through working in the most efficient and productive way. Taylor was concerned with finding more efficient methods and procedures for co-ordination and control of work. He set out four basic principles to guide management:

  • The development of a true science of management, so that, for example, the best method for performing each task could be determined.
  • Carefully select the workers and train them to perform the task by using the scientifically developed method.
  • Intimate, friendly cooperation between management labours to ensure that they use the proper method.
  • Divide work and responsibility so that management is responsible for planning work methods using scientific principles and workers are responsible for executing the work accordingly.

However, Taylor’s ideas on material rewards for performance and achieving sales target have been applied extensively in some business. The basic payment-by-result ideas have been refined into performance bonuses and various mixes of money, type of car, etc. and other tangible rewards. Some enlightened firms are giving their managers or staff some choice over how the reward package is made up, example, more emphasis on money, or less commission and a larger company car.

The benefits (mainly for the management) arising from scientific management can be summarized as follows:

  • its rational approach to the organizational work enables tasks and procedures to be measured with a considerable degree of accuracy
  • measurement of paths and processes provide useful information on which to base improvements in working methods, plant design, etc
  • by improving work methods brought enormous increase in productivity
  • it enabled employees to be paid by results and to take advantage of incentive payments
  • it stimulated management into adopting a more positive role in leadership at shop floor level.
  • it contributed to major improvements in physical working conditions for employees
  • it provided the formation for modern work studies

The drawbacks were mainly for the workers:

  • it reduced the worker’s role to that of a rigid adherence to methods and procedures over which he had no discretion
  • it led to increased fragmentation of work due to its emphasis on divisional labour
  • it generated an economically based approach to the motivation of employees by enabling pay to geared outputs
  • it put the planning and control of workplace activities exclusively in the hands of the managers
  • it ruled out any realistic bargaining about wage rates since every job was measured and rated ‘scientifically’

Therefore, in summary, while the scientific management technique has recently been employed to increase productivity and efficiency both in private and public services, it has also had the disadvantages of ignoring the human aspects of employment. This led to the creation of boring repetitive jobs with the introduction of systems for tight control and the alienation of shop floor employees from their managers.

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Frank and Lilian Gilbreth

Frank B. and Lillian M.Gilberth (1868-1924) and (1878-1972) made their contribution to the scientific management movement as a husband and wife team. They emphasized method by focusing on identifying the elemental motions in work, the way these motions were combined to form methods of operation, and the basic time each motion took. They believed it was possible to design work methods whose times could be estimated in advance, rather than relying upon observation-based time studies. Frank Gilbreth, known as the Father of Time and Motion Studies, filmed individual physical labor movements.  This enabled ...

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