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BUSINESS DISCIPLINE
(BUS 3004 – MANAGEMENT)
Lecture 2
(History Module)
Management
Theories, Social
Responsibilities &
Ethics
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Learning Outcomes
After completing this lesson, you will be able to:
1. Identify the key concepts and contributions of
management theories.
2. Interpret arguments for and against social responsibility.
3. Explain the concepts in relation to business ethics.
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Early Management (p.54)
• Management has been practiced for thousands of years.
• Organized projects were directed by people responsible
for planning, organizing, leading, and controlling.
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VARIOUS APPROACHES OF
MANAGEMENT THEORIES (p.55-59)
1. Classical Approach:
Scientific Management & General Administrative theory
2. Behavioral Approach
3. Quantitative Approach
4. Contemporary Approach
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MANAGEMENT THEORIES:
Classical Approach (p.55)
Frederick W. Taylor described scientific
management as a method of scientifically finding
the:
one best way to do a job
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MANAGEMENT THEORIES:
Classical Approach (p.55)
General Administrative Theory
External environment:
• Henri Fayol identified five management
functions and 14 principles of
management
• Max Weber: bureaucracy, an ideal
rational form of organization
Max Weber
1864 -1920
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MANAGEMENT THEORIES:
Classical Approach (p.55)
Fayol’s 14 Principles of Management:
• Division of Work
• Centralization
• Authority
• Scalar Chain
• Discipline
• Order
• Unity of Command
• Equity
• Unity of Direction
• Stability of Tenure Personnel
• Subordination of Individual
Interests to tThe General Interest
• Initiative
• Esprit de Corps
• Remuneration
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MANAGEMENT THEORIES:
Classical Approach
Max Weber is known for his description and
analysis of bureaucracy, which he believed was
an ideal, rational form of organization structure,
especially for large organization.
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MANAGEMENT THEORIES:
Behavioral Approach (p.57)
(The Hawthorne Studies)
Conducted at the Hawthorne Works of the Western
Electric Company:
-
Provided new insights into individual and group behavior at work
-
Concluded that group pressures can significantly impact individual
productivity
-
Concluded that people behave
differently when they are being
observed
-
Led to new emphasis on human
behavior factor in management
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MANAGEMENT THEORIES:
Quantitative Approach (p.58)
Used quantitative techniques to improve decision
making
• Evolved from mathematical and statistical
solutions developed for military problems during
WW II
• W. Edwards Deming and Joseph M. Juran’s
ideas became basis for
W. Edwards Deming
1900 - 1993
total quality management (TQM)
Dr. Joseph Juran
1904-2008
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MANAGEMENT THEORIES:
Contemporary Approach (p.59)
Focused on managers’ concerns outside the
organization.
- Organizations are open systems that are
influenced by and interact with their environments
Contingency approach (situational approach)
- Organizations, employees and situations are
different and require different ways of managing
- “If…then.”
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SOCIAL RESPONSIBILITIES (p.112-119)




Corporate social responsibility (CSR)
Social obligations
Social responsiveness
Ethical behavior
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SOCIAL RESPONSIBILITIES (p.112)
Corporate Social Responsibility (also known as
Social Responsibility)* refers to a company’s
intention, beyond its legal and economic obligations,
to do the right things and act in ways that are good
for society.
*CS = CSR
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SHOULD ORGANIZATION BE SOCIALLY INVOLVED? (p.114)
Exhibit 3-2 Arguments For and Against Social
Responsibility
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SOCIAL OBLIGATION &
SOCIAL RESPONSIVENESS (p.112-113)
Social obligations
- when a firm engages in to meet certain economic and
legal responsibilities.
- does the minimum that the law requires
Social responsiveness
- when a firm engages in social actions in response to
some popular social need.
(e.g. on-site child care facilities)
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ETHICAL BEHAVIOR (p.116-119)
Ethics:
 A set of rules or principles that defines right and wrong
conduct
Encouraging ethical behavior:
 Code of ethics
 Ethical leadership
 Ethics training
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ENCOURAGING ETHICAL BEHAVIOR
Codes of ethics

formal document that states an organization’s

value and ethic codes, expect all staff to follow

specific enough to guide / loose enough for

freedom of judgement
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ENCOURAGING ETHICAL BEHAVIOR
Ethical leadership
– uphold values and set cultural tone
Ethics training
– seminar/workshop, raised moral standard of
staff, increase awareness of ethical issues
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ENCOURAGING ETHICAL BEHAVIOR
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Copyright
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