introduction to management theory. learning outcomes: to understand the way in which management...
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Learning Outcomes: • To understand the way in which management
thought has evolved in the West since 1900;
• To appreciate how these 'theories' may be applied today;
• To compare and contrast the various theories presented.
The Management Theories
1. The Classical School
2. The Human Relations School
3. The Systems School
4. The Contingency School
The Management Theories
1. The Classical School
2. The Human Relations School
3. The Systems School
4. The Contingency School
[The writings of the classical school] ‘have served to label our areas of ignorance, and may have fulfilled the need of telling managers what they should be doing (even if it did not tell them what they did). But the classical school has for too long served to block our search for a deeper understanding of the work of the manager.’
Mintzberg (1973)
Classical School - Critique
The Management Theories
1. The Classical School
2. The Human Relations School
3. The Systems School
4. The Contingency School
The Management Theories
1. The Classical School
2. The Human Relations School
3. The Systems School
4. The Contingency School
Organisational System
Johnson, Kast & Rosenweig (in “The Theory and Management of Systems”. 3rd Ed.)
Goals & Values
Managerial Subsystem
Technical Subsystem
Psychosocial Subsystem
Structural Subsystem
Socio-technical System
A Client need to build
Satisfaction of the client need
Start
End
Building Process
Design
Construction
Co-ordination
Higgin & Jessop (1965)
‘If the structure [of an organisation] is its skeleton, the jobs, perhaps, its muscles, the people its blood and guts and its physical perspectives its flesh, then there still remains the nervous system, the respiratory system, the circulation system, the digestive system, etc. As with the body, the systems of an organisation overlap and interlink the parts, the structure and its members. They are of a different logical order from the structure or the components pieces, for they are defined by their purpose, and are concerned with flows or processes through the structure. They are in fact ‘systems’ - it remains the best, if the vaguest, word meaning at its broadest only an interdependent set of elements.’
Handy (1985)
Systems School
‘If the structure [of an organisation] is its skeleton, the jobs, perhaps, its muscles, the people its blood and guts and its physical perspectives its flesh, then there still remains the nervous system, the respiratory system, the circulation system, the digestive system, etc. As with the body, the systems of an organisation overlap and interlink the parts, the structure and its members. They are of a different logical order from the structure or the components pieces, for they are defined by their purpose, and are concerned with flows or processes through the structure. They are in fact ‘systems’ - it remains the best, if the vaguest, word meaning at its broadest only an interdependent set of elements.’
Handy (1985)
Systems School
The Management Theories
1. The Classical School
2. The Human Relations School
3. The Systems School
4. The Contingency School
• Reappraisal of the role of management theories.
• Each theory or school of thought can be no longer viewed as an independent approach.
• Rather than searching for the one best way to organise under all conditions, develop contingent upon the demands of the orgainsation task, technology, or external environment.
Contingency School
Burns and Stalker‘sTwo Types of Organisation
Mechanistic
Organisation
Organic
Organisation
Structure Rigid Flexible
Tasks, methods and duties
Well-defined Constantly adjusted
Communications Vertical
Hierarchy
Lateral Hierarchy
Mechanistic Organisation
Organic Organisation
Most appropriate for
Routine activities
Non-routine activities
Major concern Productivity Creativity & innovation
Decision making Programmable Encourage self-exploring
Lawrence and Lorsch (1967)
‘Contingency theory suggests that “organisational variables are in a complex inter-relationship with one another and with conditions in the environment”, and that environmental contingencies act as constraints and opportunities and influence the organisation’s internal structures and processes.’
Lawrence and Lorsch (1967)
Contingency School
The Management Theories
1. The Classical School
2. The Human Relations School
3. The Systems School
4. The Contingency School