PRINCIPLES OF
MANAGEMENT
ADVANCED CERTIFICATE IN MANAGEMENT STUDIES
INTRODUCTION
• Andrew Tucker
• B Com LLB
• 20 years experience in the workplace
•
Managed law firm
•
Managed start-up
•
Managed corporate division - +/- 800 staff
STUDY GUIDE
• Introduction to management
• Evolution of management theory
• Management environment
• Management process
• Contemporary management issues
THE NATURE OF MANAGEMENT
• The fundamental functions of a manager link
up in a specific sequence to form a process,
which comprises, planning, organising, leading
and controlling.
•
(Smit et al, 2011:6)
FOCUS AREA
• See definitions on page 15
• Levels of management on page 16
LEVELS OF MANAGEMENT
THE “NEW” ORGANISATION VS THE “OLD”
KEY MANAGEMENT CHALLENGES
• Globalisation
• Technological advancement
• Transformation of the workplace
• Managing diversity
• Increased power and demands of customers
• Intellectual capital and learning
• Roles and expectations of workers
• HIV/Aids
FROM ANCIENT EGYPT TO 2015 …………………
• Why study management theory?
• To develop a holistic understanding of the discipline
and professional competence
• What is theory?
• See page 45
• Factors influencing the development of management
theory
FROM JUST NOW TO NOW
• The Classical Management School
• Scientific Management
• Administrative Management
• The Human Relations School
• The Quantitative Management Approach
• Contemporary management
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Systems Theory
Contingency Theory
Total Quality Management
Learning Organisation
Re-Engineering
TIMELINE
THE CLASSICAL MANAGEMENT SCHOOL
Scientific Management
Administrative Management
• Focus: To increase productivity of the
worker
• Focus: to increase productivity of the
organisation
• Proponents: Fredrick Taylor – increase
specialisation & division of labour, four
principles to increase efficiency
Frank & Lillian Gilbreth – focus on
simplification by analysis, identification
of better methods & re-organise
individual actions
Henry Gantt – pay bonus to those who
beat daily target, scheduling chart
• Proponents: Henri Fayol – process
approach – identified 14 principles and
the five basic functions of management
Max Weber – bureaucratic
management – hierarchy governed by
lines of authority
• Downside: neglected the human side
which led to worker distrust
• Downside: rigid and slow to change,
undermines creativity, inflexible
THE HUMAN RELATIONS APPROACH
• Focus: the needs of the worker
• Proponents: Elton Mayo – when workers given special attention productivity
improves, peer pressure is more powerful than management demands,
managers must consider workers family situation
Mary Parker Follet – the worker knows the most about their job and should
contribute to analysis
Douglas McGregor – Theory X – managers believe workers lazy & Theory Y –
managers create climate for workers to perform
Chester Barnard – align the workers goals with the organisations goals,
identified three functions of executive management
• Downside: Human nature is complex – difficult to generalise
QUANTITATIVE MANAGEMENT APPROACH
• Focus: increase productivity through use of quantitative techniques to
efficiently use organisations resources
• Tools and Techniques used: Linear programming, PERT/CPM, Regression
analysis
• Downside: relies on mathematical & statistical models & methods not always
understood by managers or workers. Ignores the human element
CONTEMPORARY APPROACHES
Systems Theory
• Previous theories have two major
shortcomings – ignores influence of
the environment & focus on one
area to exclusion of others
• System approach – organisation is a
unified system composed of
interrelated elements – synergy
Contingency Theory
• Managerial action must be
appropriate to the situation
• Advantage is that it is flexible &
allows for use of a combination of
approaches
• Disadvantage is that it requires
managers to be skilled in application
of all the different approaches
CONTEMPORARY APPROACHES
Chaos Theory
Other Theories
• The organisation is dynamic – events
can rarely be controlled
• Total Quality management (TQM)
• “orderly disorder” (Tetenbaum, 1998)
• Six Sigma
• Characterised by knowledge sharing,
teamwork, innovation & creativity,
diversity, strong core values
• Managements role to destabilise the
system, build resilience to change,
manage transition
• Prevent mistakes
• Reduce waste, produce better,
faster & cheaper
• Learning Organisation
• Promote dialogue, lifelong learning,
sharing
• Re-engineering
• Redesign process to increase
customer value & cut cost
THE MANAGEMENT ENVIRONMENT
• Micro environment
• Organisation itself over which management has control
• Market / Task environment
• Industry environment
• Macro environment
• Outside of the market environment
THE FOUR FUNCTIONS
• Planning
• Leading
• Organising
• Controlling
THE AREAS OF MANAGEMENT
• Financial
• Marketing
• Human resources
• Operations
• Purchasing
MANAGEMENT AND LEADERSHIP
CONTEMPORARY MANAGEMENT ISSUES
CONTEMPORARY ISSUES
• Decision making
• Motivation
• Communication
• Groups and Teams