Introduction to Management Theory

1. Introduction to Management Theory

2. 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.

3. Your Management Thoughts

4. Evolution of Management Thinking

5. The Management Theories 4 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

6. The Management Theories 4 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

7. 1. The Classical School

8. Classical School

9. Classical School Henri Fayol: - 5 Functions of Management - 14 Principles of Management

10. 5 Functions of Management

11. 14 Principles of Management

12. 14 Principles of Management

13. Classical School Key Points

14. Classical School - Key Points

15. Classical School Critique

16. Classical School - Critique [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)

17. The Management Theories 4 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

18. 2. The Human Relations School

19. Human Relations School

20. Human Relations School Douglas McGregor

21. X Human Relations School

22. Y Human Relations School

23. Human Relations School Key Points

24. Human Relation School – Key Points

25. Human Relations School Critique

26. Human Relations School - Critique

27. The Management Theories 4 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

28. 3. The Systems School

29. Systems School

30. Organisational System Goals & Values Managerial Subsystem Technical Subsystem Psychosocial Subsystem Structural Subsystem Johnson, Kast & Rosenweig (in “The Theory and Management of Systems”. 3rd Ed.)

31. Design Construction Co-ordination Satisfaction of the client need Socio-technical System A Client need to build Start Building Process End Higgin & Jessop (1965)

32. 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)

33. 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)

34. Systems School Critique

35. Systems School - Critique

36. The Management Theories 4 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

37. 4. The Contingency School

38. 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.

39. Burns and Stalker‘sTwo Types of Organisation

40. Lawrence and Lorsch (1967)

41. Contingency School ‘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)

42. Construction Industry

43. The Management Theories 4 1. The Classical School 2. The Human Relations School 3. The Systems School 4. The Contingency School

44. The Four Schools Key points

45. The Four Schools - Key Points