MANAGEMENT THEORIES

E T H I O P I A N C I V I L S E RV I C E U N I V E R S I T Y

COLLEGE OF FINANCE, MANAGEMENT AND DEVELOPMENT

DEPARTMENT OF PUBLIC MANAGEMENT

BY: Eskender Tesfaye

Addis Ababa, Ethiopia

November, 2018
Introduction
The impact that management theory and how the basic functions and practice of
management as well as the role of the manager and approaches to management have
contributed to the practice of emergency management. Current views of management
theory stress the changing nature of the external environment and the need to understand
and address these external forces for change. The contribution and role of systems theory
and contingency theory to the emergency management process is stressed.

This paper examines the development of management theory and some of the
major contributions that management theory has made to the field of emergency
management. It discusses some of the major management concepts including the role of
the manager, strategic planning, systems theory and contingency theory, which are
critical to the practice of emergency management. 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). Taylor (1911) considered management a
process and one that “if approached scientifically” would lead to success.

The theory of management has grown over the past one-hundred years evolving
from the time and motion studies of engineers to contributions from social scientists, the
Hawthorne studies and a behavioral approach to more quantitative approaches that look
for the “best” or optimum functioning of an organization or “total quality management
(TQM)” (Gabor 1990). Emergency management has been influenced by the same
developments in management theory in utilizing engineering to design the most efficient
emergency operations center or emergency response routing for emergency services.

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1. Historical Theory
Historical theory is a concept that is used in different ways. Often researchers will have
a "theory" about historical events and connections. An orderly preconceived impression
of the phenomenon to be studied. Used in this way, "theory" means the same thing as
"hypothesis"

1.1. Conventional management

The conventional definition of management is getting work done through people, but real
management is developing people through work. In this theory peoples follow the old
business of her ancestors and follow the same techniques of business.
 Clear demarcation between the secular and the religious; human activities are
separated, spiritual or religious aspect is a private matter of individuals while
work is in public domain.
 It states to adopt or implement those methods of management which we learn
from our past offspring.
 Old methods used in order to continue old generation thoughts towards managing
process.

1.2. Trial and Error Theory

Learning begins when the organism faces a new and difficult situation – a problem. Most
learning organism counters errors, and with repeated trials, errors reduce. The
phenomenon is called Trial and Error Learning in a simple sense.
 This idea states that kind of management which based on such methods in which
tried and faulty ones eliminated in order to find the correct one.
 Process of experimenting with various methods of managing until one finds the
most successful.
 Trial and error is a problem solving method in which multiple attempts are made
to reach a solution. It is a basic method of learning that essentially all organisms
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 use to learn new behaviors. Trial and error is trying a method, observing if it
works, and if it doesn't trying a new method. This process is repeated until
success or a solution is reached.

2. Classical Theory
The Classical Theory is the traditional theory, wherein more emphasis is on the
organization rather than the employees working therein. According to the classical
theory, the organization is considered as a machine and the human beings as different
components/parts of that machine. Classical approach includes scientific, administrative
& bureaucratic management.

 Professes the body of management thought based on the belief that employees
have only economical and physical needs and that the social needs & need for job
satisfaction either does not exist or are unimportant.
 It advocates high specialization of labor, centralized decision making & profit
maximization.
 Basic Assumption: People Are Rational People will rationally consider the
opportunities available to them and do whatever is necessary to maximize their
economic gain.

2.1. Main Feature of Classical Management Theories

 Chain of Command
 Division of labor
 Top down communication
 Autocratic leadership style
 Predicted Behavior

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 2.2. Scientific Management
Scientific Management focuses on the “one best way” to do a job. systematic study of
relationships between people and tasks for the purpose of redesigning the work process to
increase efficiency. After the industrial revolution management took another turn.
Prominent organizations realized to go into depth of business process. Frederick Taylor
developed scientific management theory.
 The goal of this theory was to decrease waste, increase the process and methods of
production
 He also introduced the Differential Piece rate system of paying wages to the
workers
 Develop rules of motion, standardized work implements, and proper working
conditions for every job.
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  To scientifically determine the optimal way to perform a job, Taylor performed
experiments that he called time studies, (also known as time and motion studies).
 Scientific management (the Gilbreths)
 Motion study: Science of reducing a job or task to its basic physical motions.
 Eliminating wasted motions improves performance.
 Time and motion studies:
1. Break down each action into components.
2. Find better ways to perform it.
3. Reorganize each action to be more efficient.]
 Gilbreths also studied fatigue problems, lighting, heating and other worker
issues.
Four basic tenets of Scientific Management theory
1. Examine task to determine the most efficient method
2. Train workers to use the developed work method
3. Supervised workers to ensure they use work methods.
4. Allocate responsibility for carrying out work as planned
Strength of the Scientific Management theory

 Repetition improves techniques and methods

 Standard working environment People get promoted based on skills and
efficiency
 Workers are paid based on quantity output
 Train workers to perform jobs to the best of their abilities
Weakness of the Scientific Management theory
 People are to be manipulated like machines; Workers not allowed to
choose their jobs and method and train themselves
 People get tired, Workers ended up distrusting Scientific Management.
 Workers could purposely “under-perform”

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 2.3. Administrative Management
Administrative Management focuses on the manager & basic managerial functions
"emphasized management functions and attempted to generate broad administrative
principles that would serve as guidelines for the rationalization of organizational
activities.

basic tenets of Administrative Management theory

 The theory generally calls for a formalized administrative structure, a clear

division of labor, and delegation of power and authority to administrators relevant
to their areas of responsibilities.
 sound management practice falls into certain identifiable five functions. These
functions are; Plan, Organize, Command, Co-ordinate and Control.
From this insight, he drew up 14 principles
1. Division of Work – When employees are specialized, output can increase
because they become increasingly skilled and efficient.
2. Authority – Managers must have the authority to give orders, but they
must also keep in mind that with authority comes responsibility.
3. Discipline – Discipline must be upheld in organizations, but methods for
doing so can vary.
4. Unity of Command – Employees should have only one direct supervisor.
5. Unity of Direction – Teams with the same objective should be working
under the direction of one manager, using one plan. This will ensure that
action is properly coordinated.
6. Subordination of Individual Interests to the General Interest – The
interests of one employee should not be allowed to become more important
than those of the group. This includes managers.

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 7. Remuneration – Employee satisfaction depends on fair remuneration for
everyone. This includes financial and nonfinancial compensation.
8. Centralization – This principle refers to how close employees are to the
decision-making process. It is important to aim for an appropriate balance.
9. Scalar Chain – Employees should be aware of where they stand in the
organization's hierarchy, or chain of command.
10. Order – The workplace facilities must be clean, tidy and safe for
employees. Everything should have its place.
11. Equity – Managers should be fair to staff at all times, both maintaining
discipline as necessary and acting with kindness where appropriate.
12. Stability of Tenure of Personnel – Managers should strive to minimize
employee turnover. Personnel planning should be a priority.
13. Initiative – Employees should be given the necessary level of freedom to
create and carry out plans.
14. Esprit de Corps – Organizations should strive to promote team spirit and
unity.
Strength of the Administrative Management theory

 Workers receive direct command from one superior which readily gets
the job done.
 Workers are encourage to think through and carry out the plans.
 Encourages group harmony

Weakness of the Administrative Management theory

 Managers welcome suggestions but basically stick to the plans

 Personnel trainings and development are neglected.
 Environment creates the feeling of competition

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 2.4. Bureaucratic Management
Theory of bureaucratic management that stressed the need for strictly defined
hierarchy, governed by clearly defined regulations and lines of authority. Emphasized the
necessity of organizations to operate in rational way instead of following the “arbitrary
whims” or irrational motions and intentions of owners and managers.
 Weber focused on dividing organizations into hierarchies, establishing strong lines
of authority and control.
 An ideal, intentionally rational, and very efficient form of organization Based on
principles of logic, order, and legitimate authority. High degree of differentiation
exists between function and Hierarchy used for reporting.
 Formal rules and procedures and Impersonality and Careers based on merit.
basic tenets of Bureaucratic Management theory

A Bureaucracy should have

 Written rules
 Hierarchy of authority
 Fair evaluation and reward
 System of task relationships
Strength of Bureaucratic Management theory

 Division of work clearly defines responsibility.

 Personnel are selected for competence avoiding time wasted
 Continuity of administration is provided
Weakness of the Administrative Management theory

 Impersonal relationships between managers and staffs, staff and clients ,

parent and children create feelings of alienation.
 Officials makes fixed salaries for prescribed works
Takes time to reach the intended authorities

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 2.5. Contribution of Classical Theory
Classical Management Theories are very important as they provide the basis for all
other theories of management. Classical theories enhance the management abilities to
predict and control the behavior of the workers. These theories are designed to predict
and control behavior in organization. These theories consider the tasks functions of
communication in the organization and ignore the human relational and maintenance
functions of communication. These are applied in simple, small and stable organizations
while these are not applicable in big, complex and aggressive organizations of today
(Pindur, Rogers and Kim, 1995; Cole, 2004; Grey, 2005).

Classical techniques is not free from limitations are likely to dismiss casual
relations as characterized by social interchange among workers, the emergence of team
leaders aside from people specified by the official group, and so forth. Therefore their
concentrate is understandably slim. Failure to consider the informal business; the
classical ways seem to check out the life of a employee as beginning and ending at the
plant door. Untested assumptions; classical writers were dependent not on scientific
exams but on worth judgments that expressed what they considered to be appropriate life
variations, ethical codes, and attitudes toward success.

3. Neoclassical Theory
The Neoclassical approach began with the Hawthorne studies in the 1920s
(Wikipedia, 2013). It grew out of the limitations of the classical theory. Under classical
approach, attention was focused on jobs and machines. After some time workers resisted
this approach as it did not provide the social and psychological satisfaction. Therefore,
attention shifted towards the human side of management. George Elton Mayo (1890-
1949) is considered to be the founder to the neoclassical theory (Gupta C B, 1992). He

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was the leader of the team which conducted the famous Hawthorne Experiments at the
Western Electric Company (USA) during 1927-1932.
There are mainly three elements of neoclassical theory of management. They are
Hawthorne Experiment, Human Relation Movement, and Organizational Behavior.
3.1. Main Feature of Neoclassical Theories
1. Individual
2. Work Group
3. Participative management
4. Orientation
5. Motivation
6. Leadership
7. Employee Development
3.2. Hawthorne Experiment
The Hawthorne studies and subsequent experiments lead scientists to the
conclusion that the human element is very important in the workplace. The Hawthorne
experiments may classified into four stages: Illumination experiments, Relay assembly
test room experiments, Mass interviewing programme, Bank wiring observation room
study.
3.3. Human Relation Movement
Taking a clue from the Hawthorne Experiments several theorists conducted research in
the field of interpersonal and social relations among the members of the organization.
These relations are known as human relations. A series of studies by Abraham H.
Maslow, Douglas Mc Gregor, Frederick Herzberg, Keth Davis, Rensis Likert and others
lead to what is human relation movement (Singh, 1983). Human relation movement
argued that workers respond primarily to the social context of the workplace, including
social conditioning, group norms and interpersonal dynamics.

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 3.3.1. Maslow - Theory of Human Needs

Maslow Theory of Human Needs: People act to satisfy "deprived" needs for which a
satisfaction "deficit" exists. His theory of human needs had three assumptions:
 Human needs are never completely satisfied.
 Human behavior is purposeful and is motivated by the need for satisfaction.
 Needs can be classified according to a hierarchical structure of importance,
from the lowest to highest.
Maslow broke down the needs hierarchy into five specific areas:
Self-Actualization, Esteem, Social, Safety, Physiological

3.3.2. Douglas Mc Gregor Theory X and Theory Y

Theory X stands for the set of traditional beliefs held, while Theory-Y stands for
the set of beliefs based on researchers in behavioral science which are concerned with
modern social views on the man at work.
 Leaders and managers who hold Theory X assumptions believe that employees
are inherently lazy and lack ambition.
 A negative perspective on human behavior.
 Leaders and managers who hold Theory Y assumptions believe that most
employees do not dislike work and want to make useful contributions to the
organization.
 A positive perspective on human behavior.

3.4. Organizational Behavior

Several psychologists and sociologists began the study of group dynamics, Chris
Argyris, Homans Kurt Lewin, R.L. Katz, kahn and others developed the field of
organizational behavior. It involves the study of attitudes, behavior and performance of
individuals and groups in organizational settings. This approach came to be known as
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behavioral approach. It is extended and improved version of human relations movement.
It is multidimensional and interdisciplinary the application of knowledge drawn from
behavioral sciences (Psychology, sociology, anthropology, etc) to the management
problems (Cole G A, 1984). Therefore, it is also called behavioral science approach.

3.5. Contribution of Neoclassical Theory

Neoclassical theory has made significant contribution to an understanding of
human behavior at work and in organization. It has generated awareness of the
overwhelming role of human factor in industry. This approach has given new ideas and
techniques for better understanding of human behavior. Contributors to this approach
recognize an organization as a social system subject to the sentiments and cultural
patterns of the member of the organization, group dynamics, leadership, motivation,
participation, job environmental, etc constitute the core of the neoclassical theory. This
approach changed the view that employees are tools and furthered the belief that
employees are valuable resources. It also laid the foundation for later development in
management theory.

Neoclassical approach is not free from limitations. First, it lacks the precision
of classical theory because human behavior is unpredictable. Secondly, its conclusions
lack scientific validity and suffer from a clinical bias, its findings are tentative. Lastly its
application in practice is very difficult because it requires fundamental changes in the
thinking and attitude of both management and workers.

4. Modern management theory

A Change in one system affects the other subsystems. Modern management theory
depends upon System approach and Contingency approach. Management is
influenced by Internal and external environment. Appropriate techniques are
determined by situation and Environmental factors of an organization.

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 4.1. Main Feature of Modern management Theories
A. Management is responsive to environmental changes.
B. Business organizations are dynamic institutions composed of inter
related divisions and sub divisions.
C. Business firms have multiple objectives. Managers balance economic
and non economic objectives and maximize the interests of diverse
groups of shareholders like customers, suppliers etc.
D. Management is multi disciplinary in nature

4.2. Quantitative Theory

The quantitative theory (or the management science theory) has considerable impact on
solving complex business problems . Its features are:
1. It establishes relationships amongst quantifiable variables of a decision- making
situation and facilitates disciplined thinking.
2. Mathematical models help to derive precise and accurate results by analyzing
complex statistical data.
3. Decisions are based on data and logic rather than intuition and judgment

4.3. Systems Theory

This theory views organization as a whole which operates in the external
environment and has an internal environment consisting of various
departments(production, marketing, finance etc) inter related to each other in a manner
that input output conversion is done in the most efficient manner. Features
 It considers the organization as a dynamic and inter related set of parts.
 It considers the impact of both near and distant future on organizational activities.
 It integrates goals of different parts of the organization( sub systems or
departments) with the organization as a whole.
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  It enables the organizations to frame policies that promote business objectives and
social objectives.

4.4. Contingency Theory

The contingency view point developed in 1950’s when a research team headed by
Joan Woodward, an industrial sociologist, undertook a study of 100 British firms of
different sizes producing different products. It was concluded that difference in
performance was not because of principles of classical theories but because of better
technology to produce goods. This developed a theory “ appropriate actions by mangers
often depend on( or are contingent on) the situation. Features of Contingency Theory
 Management is situational in nature. The technique of management depends on
complexity of the situation.
 It is the “ if” and “then” approach to management.
 Management principles are not universal in nature as there is no best style of
management.
Conclusion
Classical and neoclassical approaches made a crucial role in the advancement of
management theories and practices. The adopted management approaches are important
due to the facts that determine the efficiency and congenial environment with which
managerial activities are performed. In this era of rapid economic development and
industrial expansion of different nations, classical and neoclassical theorists made an
undeniable role by developing different techniques of production and it enabled every
nation to be involved in this global market.
Also. System Approach, Quantitative Approach, And Contingency
Theory/Approach, Theory are included into modern management theories because these
theories were developed in late 20th century (after 1950) and haven’t found yet in the
classical and neo-classical era.

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