CONTENTS

THEORISTS PAGE

1. Henri Fayol 1 – 2

2. F. W. Taylor 3

3. Frank and Lillian Gilbreth 4

4. Henry L. Gantt 5

5. Lyndell Urwick 6 -7

6. Max Weber 8

7. Abraham Maslow 9

8. Frederick Herzberg 10

9. Kenneth Boulding 11

10. Douglas Mc Gregor 12

COMPARISON BETWEEN PRIVATE AND PUBLIC SECTOR ORGANISATIONS 13

ORGANISATIONAL CHART FOR PUBLIC ORGANISATION 14

ORGANISATIONAL CHART FOR PRIVATE ORGANISATION 15

11. Theorists and Theories in Management.

Henri Fayol (1841-1925): was French and began working at the age of nineteen as a French engineer and director of mines. In 1888 he joined a company b the name of Comambault Director. This company was in difficulty and under the leadership of Fayol, he was able to help the company grow and prosper under his leadership. He worked at this one company for the entire work life and returned after his seventy-seventh birthday. Upon retirement Henri Fayol published his work , a comprehension theory of administration. He described and classified management roles and pre was processes. Others recognized his work and he was used as reference in discourse about management.

Fayol’s five functions about management roles and actions are:

1. To forecast ad plan - prevoyance: this is to examine the future and draw up plans of actions.

2. To organize: build up the structure, material and human of the undertaking

3. To command: maintain activity among the personnel.

4. To co-ordinate: bind together, unify and harmonize activity effort.

5. T control: see that everything occurs in the conformity with policy and practice.

Fayol also identified fourteen principles for organizations design and effective administration. They are:

1. Specialization/division of labour

2. Authority with corresponding responsibility

3. Discipline

4. Unify of command

5. Unity of direction

6. Subordination of individual interest to the genera interest.

7. Remuneration of staff

8. Centralization

9. Scalar chain/line of authority

10. Order

11. Equity of tenure

12. Stability

13. Initiative

14. Esprit de corps

Fayol was the first to achieve a genuine theory of management. However he has come under criticism over the last twenty years because his principles were not designed to cope with modern conditions of rapid change and increased employee participation in the decision-making processes of the organization.

Frederick Winslow Taylor (FW Taylor 1856-1915): was born in the Boston , Massachusetts. Most of is lf was spent working on problems of achieving greater efficiency on the shop floor. His career began as an apprentice in engineering. However, he later moved to Mid Vale Steel Company, where during the course of eleven years moved from labourer to shop superintendent. It was during this time that he developed his ideas from scientific management. In 889 he left Midvale to work from Bethlehem steel company, where he consolidated is ideas and conducted some of his most famous experiments in improving labour productivity. Taylor, though experience as a worker and as a manager was convinced that workers put minimal effort into their daily work. He described this as ‘soldering’. He subdivided soldering into ‘natural soldiering’ which is man’s tendency to take things easy, and ‘systematic soldering’ which is deliberate and organized restruction of the work-rate by the employees.

The scientific approach to management, as outlined by Taylor required the following steps:-

1. Develop a science for each operation to replace opinions and rule-of-thumb.

2. Determine accurately from science, the correct time and method for each job.

3. Set up a suitable organization to take all responsibility for the workers except that of actual job performance.

4. Select and train workers.

5. Accept that management itself be governed y the science developed for each operation and surrender to arbitrary power over worker i.e cooperate with them.

After a three year period, Taylor and his colleagues reviewed the extent of their success at the Bethlehem Works. The results were that the work of 400-600 men was being done by 140, handling cost were reduced by half and the labourer received on average of 60% more than their colleagues in neighbouring firms.

Frank and Lillian Gilbreth: were married in 104. They were both the lecturers at Purdue University, and were partners in the management firms Gilbreth Inc. They had twelve children. They collaborated on the development of motion study as an engineering and management technique. Frank was very interested in the relationship between human beings and human effort. Frank, from his start in the brick laying industry, observed that workers had their own style of working, and that no two used the same style. In his study of bricklayers, he noticed that they did not always use the same motions while working. These observations led him to seek one best way to perform tasks. He invented the scaffold, so that the worker could be at the correct level, and shelf on the scaffold can accommodate bricks and mortar, thereby saving time to bend down and pick up each brick. As a result of the many improvements made, he was able to reduce the number of motions made in the laying of a brick from 18 to 5. The study of tasks movements, or motion study was a development of Taylor’s ideas and represented the Gilbreth’s major contribution to basic management techniques.

Henry Lawrence Gantt: was born in Maryland USA. He graduated from Mc Donogh School in 1878 and attended John Hopkins College. He worked as a teacher and draftsman, then he pursued mechanical engineering. In 1887, he joined FW Taylor in the leveraging of the theory of scientific management at Midvale Steel and Bethlehem Steel where the worked together until 1893. Gantt’s ideas on the rewards for labour made him a notable figure in his day. He is the best remembered for is charts. The Gantt chart originally showed the extent to which tasks had been achieved. It was divided horizontally into hours, days or weeks with the tasks marked out in a straight line across the appropriate numbers of hours or days. It was easy to assess actual and planned performance from the chart. Gantt introduced a payment system where performance of all the work allocated qualified the individual for a handsome bonus. Gantts, unlike the Gilbreth did not believe that there was ‘one best way’, but only a way which seems best at the moment. Gantt’s approach to scientific management left some discussion initiative to the workers, unlike the theories of the Taylor and the Gilbreth’s .

Lyndell f Urwick: was an author on the subject of administration and management. He worked in the armed forces and business consultancy. He believed that the only way modern man could control his social organizations as by applying rules and principles. He wrote ‘the elements of administration on 1947. He developed his principles on his own interpretation of structure and operations of organizations. He develops a ‘code of good practiced’ which he felt would lead t success in administration if followed.

Urwicks ten principles of organizations:

1. The principle of the objective-the overall purpose or objective is the raison d’etre of every organization.

2. The principle of specialization-one group, one function!

3. He principle of co-ordination-the process of organizing is primarily to ensure coordination.

4. The principle of authority-every group should have a supreme authority with clear line of authority to other members f the group

5. The principle f responsibility –the superior I absolutely responsible for the acts of his subordinates.

6. The principles of definition-jobs, with their dues and relationships, should be clearly defined.

7. The principle of correspondence-authority should be commensurate with responsibility.

8. The span of control- work no one should be responsible for more than 5 or 6 direct subordinates whose work interlocked.

9. The principle of balance-the various units of the organization should be kept in balance.

10. The principle of continuity the structure should provide for the continuation of activities.

Max Weber (18644-1920): was a Sociologist. He is considered by some to be the father of sociology. Weber used moral ideas to form an idea type bureaucracy hierarchy, impersonality, written code of conduct, promotion based on achievement, specialized division of labor and efficiency. He wanted to find out why people in the organization obeyed those in authority over them. He concluded that there were three types of legitimate authority: traditional, charismatic and rational-legal. Weber ascribed the term ‘bureaucracy’ to ration-legal authority, which exists in most organization today. The main features of bureaucracy according to Weber are as follows:

The main features of bureaucracy according to Weber are as follows:

1. A continuous organization of functions bound by rules.

2. Specified spheres of competence ie the specialization of work, the degree of authority allocated and the rules of governing the exercise of authority.

3. A hierarchical arrangement of offices (jobs) is subject o control by the next higher level

4. Appointments to offices are made on grounds of technical competence.

5. The separation of officials from the ownership of the organization.

6. Official positions exist in their own right and join holders have no right to a particular position.

7. Rules decisions and actions are formulated and recorded in writing.

Weber’s thinking on bureaucracy was dominated by his view of how rational it was. He placed emphasis on the structural aspects of the organization.

ABRAHAM MASLOW – was born in New York in 1908. His PhD in Psychology in 1934 at the University of Wisconsin formed the basis for his motivational research, initially studying monkeys. He later moved to New York’s Brooklyn College where he developed the Hierarchy of Needs model 1940 -1950’s. This is valid for understanding human motivation, management training and personal development.

Maslow theorized that employees have a basic human need and a right to strive for self-actualization, just as much as the corporate directors and owners do. The successful organizations and employers will be those who genuinely care about, understand encourage and enable their peoples personal growth – way beyond traditional work related training and development, but rather towards self – actualization. The best modern employers and organizations are beginning to learn that sustainable success is built on a serious and compassionate commitment to helping people identify, pursue and reach their own personal unique potential. When people grow as people, they automatically become more effective and valuable as employees.

FREDERICK HERZBERG (1923 – 2000) was born in Massachusetts. In the late 1950’s he conducted studies in Pittsburg into the motivation of people at work. He identified five major motivators:

1. Nature of task

2. Achievement

3. Recognition

4. Responsibility and

5. Advancement

Herzberg also identified ‘hygiene factors’ which are salary bonuses commission, working conditions, acceptability of supervision, pleasantness of working environment and job security.

He believed that good hygiene factors help to maintain a person’s feelings about work, but do not themselves motivate, as a big pay rise soon becomes accepted as the norm.

KENNETH BOULDING (1900 – 1993) was born in Liverpool, England. He attended Oxford University and was granted U.S. Citizenship in 1948. From 1949 to 1967, he joined the faculty of the University of Michigan. In 1967, he joined the faculty of the University of Colorado at Boulder, where he remained until his retirement. He was a prolific writer and an academician of world stature. He emphasized that human economic and other behavior is embedded in a larger interconnected system. He defined a management approach called ‘Systems Management’ in which organizations were to be seen as social systems where inputs (money, materials etc.) are processed into (value added) outputs which are goods and services.

Boulding believed that the absence of a committed effort to the right kind of social science research and understanding, the human species might well be doomed to extinction.

DOUGLAS MC GREGOR (1906 – 1964) was an American Social Psychologist who proposed the famous X-Y Theory in his 1960 Book ‘The Human Side of Enterprise’. The X-Y Theory is a simple reminder of the natural rules for managing people.

Theory X (‘authoritarian management’ style) proposes that:

1. The average person dislikes work and will avoid it if he/she can.

2. Therefore most people must be forced, with the threat of punishment to work towards organizational objectives.

3. The average person prefers to be directed, to avoid responsibility, is relatively unambitious and wants security above all else.

Theory Y (‘participative management’ style) suggests:

1. Effort in work is as natural as work and play.

2. People will apply self-control and self-direction in the pursuit of organizational objectives, without external control or threat of punishment.

3. Commitment to objectives is a function of rewards associated with their achievement.

4. People usually accept and often seek responsibility.

5. In industry, the intellectual potential of the average person is only partly utilized.

6. The capacity to use a high degree of imagination, ingenuity and creativity in solving organizational problems is widely, not narrowly, distributed in the population.

COMPARE AND CONTRAST PUBLIC AND PRIVATE SECTOR COMPANIES

Public Sector – These are organizations owned and controlled by the state or government. The objectives of public sector organizations are:

1. To provide an essential service.

2. To provide its services cheaply or free of charge, therefore it is available to everybody.

3. Generally beneficial to society. It is good to have healthy and well educated people in the country.

PRIVATE SECTOR – These are organizations owned and controlled by private individuals and organizations eg. Retail stores. The objectives of the private sector organizations are:

1. To survive in a competitive market.

2. To maximize profits.

3. To make returns for their shareholders (dividends).

COMPARISON and CONTRAST:

1. Private sector goals are less ambiguous than those in the public sector because they can be evaluated in terms of economic outcomes. The Public Sector leaders have to pursue multiple goals simultaneously.

2. There is more leadership turnover in the Public Sector than in private organizations. This is not only because of limits on time in Office, but also because administrative upheavals often lead to officials resigning voluntarily.

3. Public employees enjoy greater job security because of extensive grievance procedures.

4. Public Sector has an absence of market incentives.

5. Policy decisions in the Public Sector must be guided by what is indicated by law, while the Private Sector is managed under the rules of shareholders and corporate owners.

6. The beneficiary of the services offered b the public sector is the general public, while for the private sector, it is mostly the consuming public who uses the goods and services that they offer in return for profit.

7. The Private Sector is better at allocating resources efficiently, and provides better service to members of the public.

8. The priorities of the Public Sector are determined by the political process.