Summary of Unit one Mgt –core functions of any organisation – responsible for well-being of the org • • • People Goals Processes Level of management: Top, Middle and Lower levels Management skills: human, Conceptual and Technical skills Management functions: Planning, Organising, Leading and Controlling Functions are highly integrated when carried out the activities in any organisation Planning: Vision, mission, strategizing, defining, establishing, developing core activities in any organisation Organising: What tasks to be done, who are going to do these tasks, how the tasks are to be grouped, who reports to whom…. Leading: Motivating subordinates, team spirit, creating a conducive working environment and selecting the most effective communication Controlling: Establishing performance standards, monitoring actual (20.08.19) UNIT 2: EVOLUTION, DEVELOPMENT AND MGT THEORIES Theory: ‘A supposition or system of ideas explaining something’ (Thompson, 1995) MANAGEMENT THEORIES (different school of thoughts) • Provides a framework of principles which serve to guide not only the manager’s understanding of management issues but management-related actions as well. • Collection of ideas which set general rules & procedures on how to manage a business or an organisation. Activity 1 In Mauritius according you, what you are the different milestones/evolution really took place to change the way we manage business? Battle - Acquisition of Mauritius by British Agriculture – Sugar cane Industrial Revolution – manpower to machine power, free education Recognition of the importance of human beings (personnel to HRM) Recognition of technology as a tool to improve on mgt functions – cybercity etc…. Knowledge-based society/economy – Intellectual capacity building – empowerment of people Digitilization – e-business, Deep learning, Artificial Intelligence, Block For centuries scientific researchers and managers have studied the behaviours of workers, understand the working behaviours and thus developing different mgt theories. The modern practices/theories has grown out of the influence • Social • Economic • Environmental • Political factors Objectives: Search for better ways to utilise organisational resources and grow Problems faced in 1800 • Main focus on mass production • Industrial factory – Steam factory In 1800s America was the largest Industrial factory of the world. • Engage more technology in the assembly line industrial activities Three shortcomings: • Factory workers losing jobs • Workers fear about their security, noisy and dangerous machines • Inexperienced people to run large business. Activity 2: The impact of management in the current business world has increased due to a number of challenges. What are those challenges??? The impact of management in the current business world has increased substantially due to the following challenges: • Increasing size and complexity of business • Increasing specialization of work • Cut throat competition in the market • Growing unionization of labour • Sophisticated and capital intensive technology • Growing complexity of business decisions • Emergence of new regulations for business by the Government • Need for research and development • Turbulent environment of business, • Need for reconciling the interests of various groups, e.g., owners, workers, customers and the public • Importance of optimum utilization of scarce resources Global warming, economic crisis, threat of rapid obsolescence, cultural diversity and social changes et… The Evolution of Management Theory Contingency Approach Systems Theory (Comprehensive Analysis of Management) 9 Classical Scientific Theorists Emerged early 1900s Spent lots of time researching on the following: • How a specific job was done? • What steps are taken by an employee to complete the work? • The amount of time it took a worker to complete the task using different methods and finally • come up with a method/way which was effective Criticisms of Classical School of Management • No one is entirely driven by economic motivations • People’s choices and behaviour are dictated by other factors such as social needs, security and self esteem • There is no such thing as ‘the best way’ to do a job • Extreme division of labour tends to produce monotony and reduce overall skill levels • People are managed like machines – introduction of newer machines led to job elimination Scientific Management Theory - Taylor • Frederick Winslow Taylor in 1911 and Gilbreth are best known for their contributions to the field of scientific management • Taylor’s aim: Maximizing productivity & efficiency - How? The application of scientific method to the management of workers - a form of industrial engineering - Where? Factories, textiles • Method: Optimizing the way tasks were performed in the past Simplifying the jobs to enable workers to specialize in the one ‘best’ way Scientific Management Theory - Taylor Three parts: • The study of Time and Motion; • The Management on assignment; and • The theory of organisation Taylor put forward a perspective: • Study the character; • The nature and the performance of each workman; and • To train and help and teach this workman Time and Motion study • Taylor used a stopwatch to time how long it took a worker to perform a task, such as shovelling coal or moving heavy loads. • Then he experimented with different ways to do the tasks to save time. Sometimes, the improvement came from better tools. ‘Science of shovelling’ – conducted time studies to determine how much weight a worker could lift with a shovel without tiring. 21 pounds was the optimal weight. But each worker was bringing his own shovel and there were different materials (coal, dirt, snow and so on) and it was hard to ensure that 21 pound optimum. So Taylor provided workers with the optimal shovel for each density of materials. With these optimal shovels, workers became 3 or 4 times more productive, and they were rewarded with pay increases. Time and Motion study • F Gilbreth and his wife were associates of Taylor and were interested in standardization of work to improve productivity • Then devised ‘motion studies’ by photographing the individual movements of each worker (they attached lights to workers’ hands and photographed their motions at slow speeds). The Gilbreths then carefully analysed the motions and removed unnecessary ones. • Applying time and motion studies to bricklaying, e.g Gilbreths devised a way for workers to lay bricks that eliminated wasted motion and raised their productivity from 1000 bricks per day to 2,700 bricks per day. They applied same technique to personal tasks, like coming up ‘the best way to get dressed in the morning’ . He also suggested the best way to button the waistcoat, i.e. from bottom up rather than top down. Why? Because a man could straighten his tie in the same motion, rather than having to raise his hands back up from the bottom of the waistcoat. • Limitations of the Early Views Fayol, Taylor, and the Gilbreths all addressed productivity improvement and how to run an organization smoothly. But those views presumed that managers were overseeing manual labor tasks. As work began to require less manual labor and more knowledge work, the principles they had developed became less effective. Worse, the principles of Taylorism tended to dehumanize workers. The writer Upton Sinclair who raised awareness of deplorable working conditions in the meatpacking industry in his 1906 book, The Jungle, was one of Taylor’s vocal critics. Sinclair pointed out the relatively small increase in pay (61%) that workers received compared with their increased productivity (362%). Frederick Taylor answered Sinclair’s criticism, saying that workers should not get the full benefit because it was management that devised and taught the workers to produce more. But Taylor’s own words compare workers to beasts of burden: The worker is “not an extraordinary man difficult to find; he is merely a man more or less the type of an ox, heavy both mentally and physically” (Sinclair, 1911; Taylor, 1911) Limitations of the Early Views • • • When work was manual, it made sense for a manager to observe workers doing a task and to devise the most efficient motions and tools to do that task. As we moved from a manufacturing society to a service-based one, that kind of analysis had less relevance. Managers can’t see inside the head of a software engineer to devise the fastest way to write code. Effective software programming depends on knowledge work, not typing speed. Likewise, a services-based economy requires interactions between employees and customers. Employees have to be able to improvise, and they have to be motivated and happy if they are to serve the customer in a friendly way. Therefore, new management theories were developed to address the new world of management and overcome the shortcomings of the early views. Finally, early views of management were heavily oriented toward efficiency, at the expense of attention to the manager-as-leader. That is, a manager basically directs resources to complete predetermined goals or projects. For example, a manager may engage in hiring, training, and scheduling employees to accomplish work in the most efficient and costeffective manner possible. A manager is considered a failure if he or she is not able to complete the project or goals with efficiency or when the cost becomes too high. However, a leader within a company develops individuals to complete predetermined goals and projects. A leader develops relationships with his or her employees by building communication, by evoking images of success, and by eliciting loyalty. Activity 3 •Are there any jobs for which time and motion studies would make sense to do? Would any other skills need to be taught as well? Principles of Scientific Management • Get rid of general guidelines on how to complete a task, try to replace with precise, scientific approach for each task of a worker’s job • Use those same principles of scientific methodology to carefully recruit, select, train and develop each worker according to the job they will hold for the company/organisation • Level of cooperation between staff and management to ensure that jobs match plans and principle of the developed methods • Provide the appropriate division of labour and responsibility between managers and workers. Taylor identified the importance of division of labour, time and motion study, standardisation of work processes and tasks, focused on systematic selection method and payment of people based on the piece rate Disadvantages of Scientific Management • Improved productivity but increased monotony of work • Autonomy and feedback were missing from the picture of scientific management • However this approach , in focusing on work and productivity, neglected to address the ‘human’ element, which ultimately resulted in worker dissatisfaction and distrust of management – Ignored the human desire for job satisfaction • Do not focus on management from a manager’s point of view • Overlooked social needs and overemphasized physical and economic needs BUREAUCRATIC MANAGEMENT Max Weber (1947), a German sociologist developed the bureaucratic theory and according to him, the organisation has a well-defined line of authority and it has clear rules and regulations which are strictly followed: • Hierarchical structure: Each level controls the level below and is controlled by the level above. Well defined Hierarchy of authority • Specialization: People are organized into units based on the type of work they do or skills they have. High degree of Division of Labour • Management by rules: Controlling by rules allows decisions made at high levels to be executed consistently by all lower levels. The rules cover all the duties and rights of employees. • Purposely impersonal: To treat all employees and customers equally, and not be influenced by individual differences • Selection and promotion is based on technical qualifications To summarise: Key Characteristics of Weber’s Ideal Bureaucracy • Specialization of labour • Formal rules and procedures • Impersonality • Well-defined hierarchy • Career advancement based on merit The Theory of Bureaucracy Principle 1: In a bureaucracy, a manager’s formal authority derives from the position he or she holds in the organization. Authority - the power to hold people accountable for their actions and to make decisions in reference to the use of organizational resources. (Contemporary Management - 6th Edition) In today’s business models, this type of theory is not very common. Nowadays, we see more of an informal authority approach in which there is personal expertise, technical knowledge, moral worth, and the ability to lead and to generate commitment from The Theory of Bureaucracy Principle 2: In a bureaucracy, people should occupy positions because of their performance, not because of their social standing. Some organizations and industries are still affected by social networks in which personal contacts and relations, not job-related skills, influence hiring and promotional decisions. (Contemporary Management - 6th Edition) The old ways, of not what you know, but who you know, are still around in today’s society, but it can only get you so far. In today’s business world, what you know and educational knowledge, play a very important part in moving up the corporate ladder and being able to maintain a managerial position requires the utilization of staying current on up to date techniques and information. Principle 3: The Theory of Bureaucracy The extent of each position’s formal authority and task responsibilities, and its relationship to other positions in the organization should be clearly specified. When the task and authority associated with various positions in the organization are clearly specified, managers and workers know what is expected of them and what to expect from each other. (Contemporary Management - 6th Edition) Most organizations clearly define tasks and position responsibilities. Job descriptions generally include all facets of a position held by an employee. Clarification of one’s job expectations is essential for all five business functions in order to manage and maintain a high level, and measurable level of success for all organizations. Increase revenue, Reduce expenses, Increase your customer base, Increase the long-term value of each Theory of Bureaucracy Principle 4: Authority can be exercised effectively in an organization when positions are arranged hierarchically, so employees know whom to report to and who reports to them. Managers must create an organizational hierarchy of authority that makes it clear who reports to whom and to whom managers and workers should go if conflicts or problems arise. (Contemporary Management 6th Edition) Today’s business models utilize the initiative factor in which employees are given the ability to act on their own, without direction from a superior. This empowerment of employees relieves the stress of constant supervision and allows supervisors and managers to concentrate more on other administrative duties. The balance between a vertical and horizontal organizational structure is more widely used in today’s business models. Theory of Bureaucracy Principle 5: Managers must create a well defined system of rules, standard operating procedures, and norms so that they can effectively control behavior within an organization. Standard Operating Procedures (SOPs) are specific sets of written instructions about how to perform a certain aspect of a task. (Contemporary Management - 6th Edition) Most companies have SOPs and require employees to learn and follow them. We have seen how in addition to following rules and regulations, many organizations have allowed for creativity and innovation to supersede the common way of conducting business where it was once said, “rules are rules and they could never be broken”. Guidelines are needed and common sense is always important, but to have an open line of communication to new ideas and thoughts is essential in today’s business society. Criticism of Bureaucratic Organisation • Very rigid type of organisation, no importance to human relations • Government organisations and in organisations where change is very slow, appropriate for static organisations • Very dependent on regulatory and policy compliance • Large amount of red tape, lot of paper work, many desks, office culture, wastage of time, effort and money • Unnecessary delay in decision-making due to formalities and rules • Difficulty in coordination and slow communication • Prevent employees to come with innovative ideas • No voice from all employees in Decision-Making Early Management principle The most influential of these early principles were set forth by Henri Fayol,a French Mining Engineer and the Director of mining company (1988). The company was facing difficulty but he was able to turn it around and make the company profitable again. Upon retirement, he wrote down on what he’d done to save the co. He developed an “Administrative Science” – principles that he thought all organisations should follow if they were to run properly. Administrative Management Plays a vital role in the development of every business and organization The administrative theory "emphasized management functions and attempted to generate broad administrative principles that would serve as guidelines for the rationalization of organizational activities" (Scott p. 36). Administrative Management is the study of how to create an organizational structure and control system that leads to high efficiency and effectiveness based on Max Webber’s Theory of Bureaucracy and Fayol’s Principles of Management. It is based on the following: • A formalised administrative structure • A clear division of labour – By specializing in a limited set of activities, workers become more efficient and increase their output. • Delegation of power and authority • Managers need specific roles in order to manage work and workers (functions/roles of management) Henri Fayol adopted a process approach to mgt. Identified 14 principles (1917) which he argues could increase the efficiency of the management process. Henri Fayol – Administrative Management • Specialization/Division of Labour: work should be divided among individuals and groups ensuring best way to use the human resources of the organisation • By specializing in a limited set of activities, workers become more efficient and increase their output. Specialisation encourages continuous improvement, both in terms of skills and methods. Any example?.... Henri Fayol – Administrative Management • Authority/Responsibility: the right to give orders and the power to require obedience • Managers must have the authority to issue commands, but with that authority comes the responsibility to ensure that the work gets done. • Role model in the organisation (leader), setting the tone not just for what get done but how it gets done. Henri Fayol – Administrative Management • Discipline: Workers must obey orders if the business is to run smoothly. But good discipline is the result of effective leadership: workers must understand the rules and management should use penalties judiciously if workers violate the rules. • A successful organisation required the shared effort of all staff. Two-sided – obey orders – they will only comply if management play their part by providing good leadership. Henri Fayol – Administrative Management •Unit of Command – An employee should receive orders only from one boss to avoid conflicting instructions. •Unity of Direction: Each unit or group has only one boss and follows one plan so that work is coordinated. The entire organisation should be aligned and be moving towards a common goal Henri Fayol – Administrative Management • SUBORDINATION OF INDIVIDUAL INTERESTS – The interests of one person should never take precedence over what is best for the company as a whole. Individual needs and interests should be subordinate to the needs of the organisation. • REMUNERATION: Workers must be fairly paid for their services. Payment is an important motivator, but should be fair and reward welldirected effort. Henri Fayol – Administrative Management •CENTRALISATION: It refers to decision making: Specifically, whether decisions are centralized (made by mgt) or decentralised (made by employees). Fayol believed that whether a company should centralise or decentralise its decision making depended on the company’s situation and the quality of its workers. Henri Fayol – Administrative Management •LINE OF AUTHORITY: A hierarchy is necessary for unity of direction. The line of authority moves from top mgt down to the lowest ranks. This hierarchy is necessary for unity of command, but communication can also occur laterally if the bosses are kept aware of it. The line should not be overextended or have too many levels. Henri Fayol – Administrative Management •ORDER: Orderliness refers both to the environment and materials as well as to the policies and rules. People and materials should be in the right place at the right time. •An organisation’s requirements must be balanced against its resources. Henri Fayol – Administrative Management • EQUITY: Fairness, dignity and respect should pervade in the organisation. Employees must be treated equally and fairly • PERSONNEL TENURE: Organisation do best when tenure is high (turnover is low). People need time to learn their jobs, and stability promotes loyalty. High employee turnover is inefficient. Employees need a period of stability in a job to perform at their best. • INITIATIVE – Allowing everyone in the org. the right to create plans and carry them out will make them more enthusiastic and will encourage them to work harder. Encouraging staff to show initiative is a source of strength in an org. • ESPRIT DE CORPS: Management should foster harmony, cohesion and morale among the organisation’s staff. Harmony and team spirit across the org builds morale and unity. Scientific Mgt v/s Administrative Mgt Theory Unlike Scientific Mgt Theory focused on improving the worker’s efficiency and minimising the task time, the Administrative Mgt theory focus is on how the mangement of the organization is structured and how well the individuals therein are organized to accomplish the tasks given to them. Administrative Theory focuses on improving the efficiency of mgt first so that the processes can be standardized and then moves to the operational level where the individual workers are made to learn the changes and implement those in their routine jobs. However the Scienctific Mgt Theory, it emphasizes on improving the efficiency of the workers at the operating level first which in turn improves the efficiency of the management. The Administrative Theory follows the top-down approach while the Scienctific Mgt theory follow the bottom-up approach CLASSICAL APPROACH MGT Scientific • Concern for precise work methods • Best way for jobs to be done • PROCESS Bureaucratic • Impersonal view of organisations • Formal structure, legitimate authority and competence of management • PEOPLE Administrative • Development of managerial principles • Best way to organise all jobs in a business • INTEGRATIVE: PEOPLE, PROCESS AND ENVIRONMENT Behavioral Management The Behavioral Science movement started after 1920 which emphasize on the importance of individuals and their interpersonal relationship, psychology of the individuals as related to personal needs and motivation and motivational potential in people. Important contributors are • A Maslow: developed a need hierarchy to explain human behaviour within an organisation • Hertzberg & Vroom: developed motivational models by explaining the causes of human behaviour and motivation in business • McGregor: developed his two theories X &Y. The Behavioural Mgt Theory has drawn heavily on the work of Maslow to explain human behaviour and the dynamics of motivation process. BEHAVIOURAL MANAGEMENT APPROACH Employee Employee behaviour motivation Employee’s Employee’s satisfaction need Treat employees as important asset Human relations movement Good working conditions Management taking interest in workers Hawthorne studies: Elton Mayo’s experiment – Human Relations Movement Investigated the relationship between the level of lighting in the workplace and workplace productivity at the Hawthorne Works at the Western Electric Company in Chicago Stated that the employees’ morale had a great influence on productivity and the manger should treat the as social beings instead of economic beings. Workers’ well-being had served to enhance worker performance. The manager should understand group attitudes and psychology, as employees are members of a group. Hawthorne studies • Productivity increasing when workers believe that they are being observed closely • Employee perform better when managers and comanagers make them feel valued • Financial rewards are not necessarily conducive to increasing worker productivity • Workers care about self-fulfilment, autonomy, empowerment, social status and personal relationships with co-workers. Hawthorne Effect The discovery that paying special attention to employees motivates them to put greater effort into their jobs. (from the Hawthorne management studies, performed from 1924 – 1932 at Western Electric Company’s plant near Chicago) Behavioural Management Approach Hawthorne studies – Elton Mayo Impact of work conditions on employee productivity McGregor’s idea suggest that there are two fundamental approaches to managing people: Employee motivation v/s productivity • Theory X - get poor results • Theory Y -Managers use this Need for recognition, security, sense of belonging – worker’s morale & productivity • Psychological stimulus • Human aspects theory which produces better performance and results and allows people to grow and develop McGregor Theory X – ‘’Authoritarian management” style Person who: 1. Dislikes work 2. Prefers to be directed 3. Avoids responsibility 4. Is relatively unambitious 5. Resists change 6. Works for money 7. Wants security LOWER-ORDER NEEDS Theory Y – “participative management’’ style Person who: 1. Accepts responsibility 2. Commits to objectives 3. Applies self-control and self-direction 4. Shows effort to work – Not lazy 5. Have potential 6. Creativity, using intellectual effort HIGHER-ORDER NEEDS The Behavioural approach theory of Mgt reflected The classical theory reflected almost all the aspects almost all aspects of Theory Y. of Theory X • Maslow Maslow’s Needs Theory proposed that human beings are driven by different factors at different times. These driving forces are hierarchical, in the sense that we generally start at the bottom layer and work our way up. • It simply means that higher needs don’t appear unless and until unsatisfied lower needs are satisfied. If you are suffering from cold and hunger, for example, you just don’t have the time or energy to worry about your selfesteem. Your entire being is focused on food and warmth. Maslow’s Needs Theory Maslow’s Needs Theory • Human needs and motivation LOWER-LEVEL NEEDS MUST BE SATISFIED BEFORE THE HIGHER-LEVEL NEEDS WHEN THE LOWER LEVEL NEED IS FULLY SATISFIED IT NO LONGER MOTIVATES AND THE NEXT HIGHER LEVEL NEED BECOMES MORE IMPORTANT AND RELEVANT It represents the idea that human beings are propelled into action by different motivating factors at different times – biological drives, psychological needs, higher goals. The first level, at the bottom of the pyramid, consists of our short-term basic needs, also known as physiological needs: food, water, warmth, sex. The second level consists of longer-term safety needs: security, order, stability. The third level represents the social need for affiliation, also known as “love and belonging”. We want to be accepted by others around us. We want to have stable relationships. The fourth level represents the need for esteem. Within our social groups we want to be recognized and admired as individuals who accomplish things. We want prestige and power. Almost at the top of the pyramid, self-actualization is the desire to experience ever deeper fulfilment by realising (actualising) more and more of our human potential. Source: http://personalityspirituality.net/articles/the-hierarchy-of-human-needs-maslows-model-of-motivation/ Quantitative management approach • Emerged in 1940s • Influenced by World War II during which both the British and Americans utilized mathematical approaches and technology to solving war-related problems. • Organizational efficiency depends upon the quality of managerial decisions • Used mathematical techniques to solve production problems - A problem is expressed in the form of a quantitative or mathematical model. • The different variables in management can be quantified and expressed in the form of an equation • “….by Total Quality Management - Deming adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs. The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces.“ Dr E Deming • Controlling quality/performance of work/workers • Implementing ISO certification • TQM can be applied to any type of organization; it originated in the manufacturing sector and has since been adapted for use in almost every type of organization imaginable, including schools, highway maintenance, hotel management etc… • When people and organizations focus primarily on quality, quality tends to increase and costs fall over time. However, when people and organizations focus primarily on costs, costs tend to rise and quality declines over time. • Plan, do, check, and act (the PDCA cycle) In the planning phase, people define the problem to be addressed, collect relevant data, and ascertain the problem's root cause; in the doing phase, people develop and implement a solution, and decide upon a measurement to gauge its effectiveness; in the checking phase, people confirm the results through before-and-after data comparison; in the acting phase, people document their results, inform others about process changes, and make recommendations for the problem to be addressed in the next PDCA cycle. Contemporary management theories • Emerged in 1950s • Influenced by rapid and ongoing change which characterized the business environment after World War II • Recognise organisations as social movements • Traditional organisations (clear boundaries, formal procedures and well-defined authority structures) whereas social movement organisation will take action which is focused on specific political or social issues, civil right, human rights, feminist movement etc… More leading businesses are harnessing the mechanics of social movements to improve how they will manage their businesses in the future. How about Modern Management Approach? Environment In the New Millennium • Environment in the millennium •Information and electronic age •Information and knowledge is going to be readily available to us all •Information speed through Internet •The future is going to be dominated by our need to understand systems. Learning Organisations • Learning organisation is ‘an organisation skilled at creating, acquiring and transferring knowledge and at modifying its behaviour to reflect new knowledge and insights. (Harvard Business School, 1993) • Five building blocks of learning organisations are: • Systematic problem solving – co. has a consistent method of solving problem using data and statistical tools rather than assumptions • Experimentation – experiments are a way to test ideas • Learning from past experience – Essential for co. to review projects and products to learn what worked and what didn’t • Learning from others – Good ideas from anywhere, network with other cos. In a continual search for good ideas to adapt and adopt • Transferring knowledge – Sharing knowledge is the way to make everyone a smart and contributing member. Managerial Approach to Learning Organization • Managers must create an environment conducive to learning • Managers encourage the exchange or information among organization members • Managers promote • systematic problem solving • Experimentation • learning from experiences and past history • learning from experience of others • transferring knowledge rapidly throughout the organization From “The Fifth Discipline” by Peter Senge, 1990 Virtual organisations •A virtual organisation is one in which employees work remotely. The co. relies on computer and telecommunications technologies instead of physical presence for communication between employees. E-mail, wikis, web meetings, phone and Internet relay chat (IRC) are used extensively to keep everyone in touch. • The value of wikis – the document remains available for people to access anytime. A wikified organisation puts information into everyone hands. Manager don’t just talk about empowering workers – the access to ICT empowers workers directly. Theory Z • “ • Involved workers are the key to an increase in productivity.” From “Theory Z” by William Ouchi, 1981 Western Point is a well-established finance consultancy firm with 40 years’ experience in this field. The General Manager has hired the services of Henry, a Personnel Administrator but has purposely not defined the newcomer’s role in the firm. You as a line supervisor, have become involved in several arguments with this Personnel Administrator when he attempted to relieve you and other supervisors of the authority for transferring and promoting employees, changing pay rates, and other matters on which he should only be advising line management. You feel that he does not have the proper perspective for his job and that he is trying to take over more and more power in order to create a good job for himself. You have mentioned this usurping of authority to your boss, the General Manager, and have asked him to define the personnel job. The boss has answered that he is allowing the Personnel Administrator to find his own niche in the organization. You feel that the morale of the people in your department will suffer unless the Personnel Administrator’s position is made clear. Adapted from Dr Norris W Dalton (2002) Management Practice. South African Institute of Management. First Edition (2002) Mr Henry is supposed to conform to his duty as Personnel Administrator. As a Personnel Administrator, what are the functions that Mr Henry is supposed to be involved in? Develop a practical working relationship and conducive environment based on Fayol’s principles and Maslow’s Needs theory of management for this firm. Do you think, it is desirable to have different levels of Management in this firm? Support your answer with valid reasons.
