Transcript CCBS-Course-Management Theories and Practice

MANAGEMENT
THEORIES AND
PRACTICE 1
FACILITATOR
Godwin Emmanuel, Oyedokun
ND (Fin), HND (Acct.), BSc. (Acct. Ed), MBA (Acct. & Fin.), MSc. (Acct.), MSc.
(Econs & Fin.), MTP (SA), ACA, FCTI, ACIB, AMNIM, CNA, FCFIP, FCE, CICA,
CFA, CFE, CPFA, ABR, CertIFR, FILEX
Chief Technical Consultant/Managing Partner
OGE Professional Services Ltd
GOE Professional Practice
FACILITATOR
Fifehanmi Bankole
CONTENTS
• History and Approaches to Management Ideas
• Background of Management Theory and implication
in practice
• Contemporary Trends in Management Theory
• Management Practice: Case Study Analysis and
Evaluation
Introduction
 Emergency today is a complex function involving public safety and
security, business affairs, public and information affairs,
information systems administration, communication technologies,
mapping sciences and hazard modeling, legal affairs, and
coordination with numerous other organizations.
 This diverse set of functions and activities requires emergency
managers to be effective managers of programs and operational
managers of many direct disaster activities.
 The effective management of both program and operational
activities requires an understanding of management principles.
Management
 Management is the
process of getting things
done, effectively and
efficiently, through and
with other people.
 (Robbins, DeCenzo, StuartKotze,2002)
Management
 The management process is an integrated whole, even
though we may describe the process as a series of
separate activities to understand the parts.
 The model we are using identifies the management
functions as planning, organizing, and controlling linked
together by leading.
 What does this mean? Planning determines what results
the organization will achieve, organizing specifies how it
will achieve the results, and controlling determines
whether results are achieved and by using planning,
organizing and controlling managers exercise leadership.
Management
 Peter Drucker, a nationally recognized
management consultant describes 3 major tasks
of managers as:
1. To decided the purpose and mission of the
organization.
2. To make work productive.
3. To manage social impacts and responsibilities.
Management
Management Functions are activities that
comprise the Management Process.
The four basic Management activities are:
Planning
Organising
Leading
Controlling
Management
Planning - involves defining an organisation's goals,
establishing an overall strategy for achieving these
goals, and developing a set of plans to integrate and coordinate activities.
Setting goals keeps the work to be done in proper focus
and helps organisation members keep their attention on
what is important.
Managers are also responsible for designing an
organisation's structure.
Organising - involves determining what jobs or tasks
are to be done, hiring and choosing who is going to do
them, and deciding how they will be done.
Management
Leading - is influencing other people to get the job
done.
Leaders direct the activities of others, motivate
employees, maintain morale, mold company culture,
and manage conflict and communication.
Controlling - is making sure that an organisation's
performance is up to par with the goals previously set.
A manager must continuously monitor and compare
actual performance with set standards and take
corrective action when necessary.
Manager
A manager is someone who plans, organises, leads,
and controls people and the work of an organisation
with the aim of ensuring that the organisation achieves
its goals
(Dessler, Tarke, Cyr, 2001)
“
 "People who ignore the past are destined
to relive it."
A person unaware of mistakes made by
others is likely to repeat them.
Each generation of managers needs to
understand the lessons learned by its
predecessors and build on them.
Management Roles
 Interpersonal
1. Figurehead
2. Leader
3. Liaison
 Informational
1. Monitor
2. Disseminator
3. Spokesperson
 Decisional
1. Entrepreneur
2. Disturbance Handler
Management Skills
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Technical
Conceptual
Political
Communication
Interpersonal
Effectiveness
Management Tasks
 Managers need to constantly monitor and anticipate changes
occurring in today’s volatile business environment.
Organisations are facing many new challenges and forces in
today’s more competitive global marketplace.
 Some of the most significant challenges and trends include:
 Technological Innovations
 Globalisation
 A more Diverse Workforce
 Changing Political Systems
 Formation of new Trade Agreements/Areas
 Synergy
Management as a Process
 What do statements like “ that is a wellmanaged company “ mean?
 They seem to imply that management is some
type of work or set of activities and that these
activities are performed quite well and
sometimes not so well.
Management as a Discipline
 Classifying management as a discipline suggests that there is
a body of knowledge that can be learned.
(1) Management is a subject with principles, concepts, and
theories.
(2) A critical purpose of studying management is to learn how in the
process of managing to apply principles, concepts, and theories
of management and this is particularly emphasized throughout your
internship experiences.
(3) This Basic Module you will assume the role of a manager even
if this is not your current position. Why? To begin to think, analyze,
and apply management theories, concepts and principles within
your internship setting.
 It is never to early to start thinking like a manager.
Management is also
a Human Activity
 As a human activity management emphasizes
the importance of employees with whom
managers work and whom they manage in
accomplishing an organization’s objectives.
 In organizations, people are the most important
asset. Successful managers understand this
and recognize the need to establish a strong
bond between the organization and the
relationships of the manager and the people
they manage.
Management As a Career
 Spend this module in thinking about the management
theories and principles that can contribute positively to
your organization.
 And also think about how you would manage each
situation for a more positive outcome.
Efficiency & Effectiveness
Efficiency means doing a task correctly.
Effectiveness is the attainment of a goal.
What is the difference exactly?
Efficiency is how you go about accomplishing
something (means), while
Effectiveness is the attainment or completion of a goal
(ends).
Efficiency & Effectiveness
Example:
If you kill a fly with a hammer you may be
effective (ends - killing the fly). But you would
be much more efficient by using a fly swatter
(means – waste less energy, swat faster).
Why Studying
Management Theories &
Practice
“
 In order to understand a theory, one
needs to understand the theory that
preceded it, and in order to
understand that theory, one needs to
understand the theory that preceded it
 A theory is an answer to a question.
To understand a theory, one must first
understand the question that it
answers
(Professor Akinlolu Agboola)
“
▷A theory should not be
evaluated in relation to common
sense, for three reasons:
1. Different people have different
conceptions of common sense
2. Common sense changes in time
3. Common sense is not wellformulated and clearly stated
(Professor Akinlolu Agboola)
“
▷Common sense is an unstable
reference frame for evaluating a
theory
▷Instead, evaluate a theory in
relation to the previous, welltested, widely accepted theory
(Professor Akinlolu Agboola)
Theories and Practice
 A theory
is a coherent group of assumption
put forth to explain the relationship between two
or more observable facts and to provide a
sound basis for predicting future events.

Stoner: pg. 28

Why:
 Guide management decision.
 Shape our view of organization.
 Make us aware of the business environment.
 A source of new idea.
THE EMERGENCE
OF M & O THEORIES
The Neo-Human
Relation Movement
The Contingency
Approach
The System Approach
The Quantitative
School
The Behavioral Sc
School
Classical Management
Theories
1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990
AHAB/EVOLUTION/1102
28
1900s
TRADITIONAL
THEORIES
1940s
1970s
MODIFICATION
CONTEMPORARY
EVOLUTION OF ORGANISATION AND MANAGEMENT THEORIES
AHAB/EVOLUTION/1102
29
Traditional/
Classical
Theories
Scientific
Management
Efficient Task
Performance
Bureaucratic
Model
Modifications
Management
Science
Economic
Technical
Rationality
Human
Authority & Structure Relation
Administrative
Theory
Behavourial
Science
Psychology,
Sociology, etc.
AHAB/EVOLUTION/1102
Contemporary
Approaches
System Approach
Subsystem &
Environment
Contingency
View
No Best Method
-Situational Factors.
Management Theories and
Practice
 Management theories rely upon observation and
mathematics in order to construct a model for
business activities.
 Management practice relies upon case studies and
the individual experiences of managers when
dealing with workplace situations.
 Since both schools of management have flaws and
benefits, a business owner should study both styles
of management in order to improve profitability.
 (Chris Hamilton)
Management Theories and
Practice
 Employees most commonly leave their jobs due to
poor management practices.
 Situation that increases costs and lowers the talent
present in a business
 Business
owners
should
understand
good
management practices through personal research or
formal education in order to create a business model
that can:
1. improve employee productivity,
2. eliminate redundancy in processes. and
3. increase retention rates
Management Theories and
Practice
 The growth of management concepts was needed to guide the
growth of industrial manufacturing
 A similar growth in emergency management theory also
evolved in response to the need for theory, concepts and
proven practices in response to the devastating impacts of
hurricanes, floods, earthquakes, and chemical spills.
 Management theory provides a sound basis for supporting the
emergence of emergency management theory utilizing the
management process from planning, organizing, leading and
controlling (Fayol 1916, Mintzbert 1973, Katz 1974, Koontz
1984).
MT&P- Limitations
 Models of human behaviour in a business do not consider all of
the variables that can impact profitability.
 Different businesses face different issues with employees,
financial resources and the use of technology.
 For example, a workplace of single mothers requires a
company to focus more on family leave, a consideration that a
theorist might not work into a general business model.
 Management practice can also result in flawed management
behaviour:
 because managers cannot see the business as a whole and
instead rely solely upon their own experience.
MT&P- Limitations
 Management theories work best from a macro perspective,
such as when a business determines the appropriate model for
management as a whole or starts a large project that it has
never attempted before.
 The formal structure of this type of management works best for
large corporations that have a top-down management structure
which requires uniformity in order to accomplish goals, even if
this model slightly decreases productivity.
MT&P- Limitations
 Since management practices rely upon the opinions of
managers and employees or a case study in a particular area
of business, they work best for informal organizations.
 Little doubt exists as to whether a management model will
work, because the track record of the model speaks for itself.
 Management practices focus more on dynamics between
groups, which allows managers more flexibility in making
decisions and helps employees function together as a unit
when they work together on a project.
Concept of Management
 The application of management is broadly from individuals up
to multi-national companies in worldwide.
 The objective of management is not only to be a great
entrepreneur,
 but also to build up logical thinking and know how to
integrate limited resources to gain the greatest benefits.
No matter for a frontline staff, board of management, students
or even housewives,
 they can implement the management knowledges, skills and
wisdoms in everyday living to finish jobs effectively and
efficiently.
Development of Management
 Since the eighteenth century, in response to the rise of the
industrial revolution, production-scale expansion of the
historical background, for planning, organizing, leading, and
controlling the management of the consequent demand
enhancement, led the scholars actively seek to enhance
organizational efficiency and the conduct of scientific method to
make the operation measurement more effectively to promote
organization.
Development of Management
 As times past, the social environment under the several
amendments from management theory changed and emerged.
 Thought through the fundamental of management,
representatives of each school with its main point of the
introduction, the development trend of management is very
helpful for understanding of management concepts.
 the rise of the industry revolution, has been evolving to a
variety of contemporary management theory,
 including the classical theory, behavioural, quantitative and
other theories and new theory, all-inclusive view of each of the
times to meet the specific phenomenon and needs for today as
the former of different theories are complementary,
 without exception, it becomes today's managers resources.
Types of Management
Theory
Classical Theory (1): Scientific
Management
 Ideas of early management was developed by the impact of
natural methodology and stress rational thinking.
 The scientific management theory was based on the scientific
work to improve individual staff's capacity,
 the representatives of this theory are Taylor, Jill Perth couple
and Gantt.
Classical Theory (2):
Administrative View
 Unlike scientific management emphatically individual staff
productivity, administration is stressed the operational
efficiency of the whole organization, to develop a general
theory to explain the good management of the elements
required why have laid the infrastructure for today's
organization theory to charge for the representatives of Henri
Fayol and MaxWeber.
Behavioural (1): Hawthorne
Experiment
 Classical Theory is mainly focused on the organization and
staff with mechanical perspective, such theory behaviour
is concentrated on the point of view of human nature,
importance of individual attitudes and behaviours, methods for
managers to motivate employees for improving productivity.
The most well-known study is the "Hawthorne Experiments."
Behavioural (2): Interpersonal
Perspective
 Hawthorne experimental results that the productivity of
employees affected by the interaction and the caring of
management to staff which can provide staff satisfaction,
leading to better performance.
 This is the basic foundation for the behavioural view of human
relations, with Maslow and McGregor, for the representatives in
interpersonal perspective.
Quantitative Theory: Management Science
and Operations Management perspective
view
 Quantitative Theory originated in World War II, the spirit of
scientific management commitment, the use of quantitative
measurement and computer modelling theory such as analysis
of complex business problems, gradually become a branch of
the management science and operations management
perspective
New Theory (1): Systems
Perspective
 Recalling the classical theory and the ideas of behavioural and
quantitative theory, you can find many theories points of view
are not mutually inconsistent.
 However, with a different background and practical needs on
each amendment, it emphasized that the gradual integration of
the new theory formed to the system point of view represented
and the contingency perspective.
New Theory (2): Contingency
perspective
 With the same theory system, academic industry focuses on
how to adapt the environmental change that developed for
"contingency perspective".
 Moreover, there is no "universal solution" for the management
to solve such conditions which depends on the circumstances.
It would be a timely situation for management to handle
the differences of individuals and the environment.
How to Manage
 In the end, contemporary management knowledge is the
product of 3 basic approaches:
 The Classical Approach
 The Behavioral Approach
 The management Science Approach
 We shall discuss more of these in Intermediate and
Advanced classes
KEY People in
Management Theory
“
▷The term management refers
to the body of knowledge,
concepts and procedures
used by managers.
▷A great deal of management
knowledge comes from the
autobiographies of people who
practiced management.
▷(Dr. Shirley Ezell)
Adam Smith
 Modern History
 Adam Smith publishes
The Wealth of Nations
 Division of Labour
 Industrial Revolution
a. Managers needed skills to:
b. Forecast demand
c. Ensure that the necessary material resources were available and on
hand for producing goods in question
d. Assign tasks to people
e. Ensure that machines were kept in good working condition
f. Find markets for the finished products
Frederick W. Taylor (1856-1915)
 Frederick W. Taylor (1856-1915)
 Called the Father of Scientific Management
 Scientifically studied work to identify the “one best way” to get a
job done (standardising tasks)
 Scientifically selected, hired, and trained workers
 Motivated workers with financial rewards (prorata)
 Introduced work breaks
Henry Gantt (1861-1919)
▷Developed the Gantt chart used for scheduling multiple
overlapping tasks over a time period (still widely used in
organisations today for scheduling work)
▷Focused on motivational schemes, emphasising the greater
effectiveness of rewards for good work
▷Developed a pay incentive system with a guaranteed minimum
wage and bonus systems for people on fixed wages
Henri Fayol (1841-1925)
 Believed that management required specific skills that could be
learned and taught
 Designated management as a universal set of functions that
included planning, organising, commanding, co-ordinating, and
controlling
 Described the practice of management as something distinct
from accounting, finance, production, and the other business
functions
 Developed several principles of management
Mary Parker Follett (1868 - 1933)
 Focused on how organisations cope with conflict
 Emphasised the human element in organisations and the
need to discover and enlist individual and group
motivation
 Introduced three important concepts:
 The Universal Goal
 The Universal Principle
 The Law of the Situation
Max Weber (1864-1920)
 Known as the Father of Modern Sociology
 Analysed bureaucracy as the most logical and rational
structure for large organisations
 A bureaucracy was a system characterised by division of
labour, a clearly defined hierarchy, detailed rules and
regulations, and impersonal relationships
Abraham Maslow (1908- 1970)
▷Developed a needs-based theory of
motivation (Hierarchy of Needs)
▷The theory is now considered central to
understanding human motivation an behaviour
W. Edwards Deming (1900- 1994)
 Father of Total Quality Management
 Regarded by the Japanese as the key
influence in their postwar economic
turnaround
 Created constancy of purpose for continual
improvement of products and services
W. Edwards Deming (1900- 1994)
 Father of Total Quality Management
 Regarded by the Japanese as the key
influence in their postwar economic
turnaround
 Created constancy of purpose for continual
improvement of products and services
Max Weber Principles
Weber believed that an efficient organization
should be based on 5 principles
Principle 1. In a bureaucracy, a manager’s formal authority
comes from the position held in the organization.
Principle 2. In this context people should occupy positions
because of their performance, not because of their social
standing or personal contacts.
Principle 3. The extent of each position’s formal authority
and task responsibilities should be clearly understood.
Principle 4. Positions should be arranged hierarchically to
that authority is exercised effectively and employees know
to whom they are to report and who reports to them.
Principle 5. Managers must create a will-defined systems
of rules, standard operating procedures, and norms to
control behavior within an organization.
The Contributors to Classical
Organizational Theory:
Weber and Fayol
▷Henry Fayol was the other major contributor and devised
his 14 principles of effective management:
Principle 1. Division of Labor: Advocated specialization
and increasing worker’s responsibilities.
Principle 2. Management Authority and Responsibility:
Managers must have the authority to give orders and be
responsible for effectiveness of their departments.
Principle 3. Unity of Command: Employees should
receive orders from and report to only one supervisor.
Henry Fayol (Cont.)
Principle 4. Line of Authority: Restricting the
organization’s number of levels enable it
to
act quickly and flexibly.
Principle 5. Centralization: Managers must decide how
much authority to centralize at the top and how much to
give to workers.
Principle 6. Unity of Direction: All workers should be
committed to the same plan of action.
Principle 7. Equity: Workers are expected to perform at
high levels and to be treated with respect and justice.
Principle 8. Order: Order is the methodical arrangement
of jobs to provide the greatest benefits and career
opportunities.
Principle 9. Initiative: Managers must encourage workers
to act on their own to benefit the organization.
Henry Fayol (Cont.)
Principle 10. Discipline: Employees would be
expected to be obedient, energetic and
concerned
about the organization’s welfare.
Principle 11. Remuneration: Managers should use reward
systems, profit sharing and bonuses to acknowledge high
performance.
Principle 12. Stability of Tenure of Personnel: Long term
employment helps employees develop the skills to make
significant contributions.
Principle 13. Coordination of Individual Interest to the
Common Interest: Employees subordinate their individual
interest to those of the firm.
Principle 14. Espirit de Corps: Importance of a shared
commitment and enthusiasm in an effective organization.
Contributions of the Classical Approach
▷The greatest contribution of the classical approach was the
identification of management as an important element of
organized society.
▷The identification of management functions: planning,
organizing and controlling provided the basis for training new
managers and was a valuable practice.
▷Many management techniques used today: time and motion
analysis, work simplification, incentive wage systems,
production scheduling,
personnel testing, and budgeting
are
techniques from the classical approach.
Summary and Conclusion
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Managers in today’s market must update tools and principles
on a continuous basis.
Management development is increasingly global in outlook
and places a high value on contributing to organizational
effectiveness and competitive advantage.
To be successful a manager must use and integrated
approach, using a combination of tools and principles.
Our society depends on the goods and services provided by
different types of organizations that individuals manage.
All organizations are guided and directed by the decisions of
one or more individuals who are commonly known as
managers.
Thanks!
Any questions?
Name – Godwin Oyedokun
Email – [email protected]
Phone Number - +2348033737184; +2348055863944
Website: www.ogecops.com
Name – Fifehanmi Bankole
Email – [email protected]
Phone Number - +2348090609405; +234813 544 5870
Website: www.bravewealth.smartmediatechnologies.com