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Management Thoughts and Philosophy Classified in Theme Framework

Article  in  The International Journal of Business & Management · April 2020

DOI: 10.24940/theijbm/2020/v8/i4/BM2004-028

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THE INTERNATIONAL JOURNAL OF BUSINESS & MANAGEMENT ISSN 2321–8916 www.theijbm.com

THE INTERNATIONAL JOURNAL OF

BUSINESS & MANAGEMENT

Management Thoughts and Philosophy Classified in

Theme Framework
Okeah Mary Inimotimi Nkemdilim
Assistant Lecturer, Department of Management, Rivers State University, Nigeria

Abstract:
This paper examined the different school of management thought and philosophy from the classical to the contingency
and seeks to find out what categorized each philosopher according to the themes and why they are grouped the way they
are. The paper critically analyzed their theories, characteristics, functions, principles, and critiqued each philosopher and
their theories. Finally the paper sought a contemporary approach to management thought and philosophy.

Keywords: Classical, contingency, contemporary, theme, management thought, philosophy

1. Introduction
Management has been defined by so many authors in so many ways. It has been defined as a process, system,
science, arts, discipline and career, universal phenomenon, while others have defined it as getting things done through
people by directing, controlling, it has been defined as getting things done making the best use of available resources etc.,
but the most outstanding and encompassing of all definitions is that postulated by Zebulun (1997). He defined
management as a composite process or planning, organizing, directing, and controlling enterprise functions to achieve set
goals.
On the other hand, management thoughts and philosophy also defined by Zebulun (1997), is a set of ideas that
underline the planning, directing and controlling enterprise functions to achieve set goals with respect to how they are
generated and applied. The generation and application involves a systematic process of evolution and guidance in the form
of principles.
Over the years, there has been a drastic change in organizational structure and this has also affected the
management process. Because of these changes, several authors have come up with different thoughts and themes of
understanding business operations. The different thought and theme when combined together is what is referred to as
Management Thought. Disagreement exists as the exact number of management schools that exists, while some writers
have identified as few as three, others have identified as much as twelve. Those discussed here are five.
As earlier stated, over centuries, management thought have evolved to include the following;
 Classical or Traditional School.
 Neoclassical or Behavioral School.
 Quantitative School or Management Science.
 System School.
 Contingency School.
 Contemporary School

2. Classical or Traditi-Onal School of Thought (Theme)

Here, more emphasis is laid on the organization than on the employee working in the organization. The classical
theme sees the organization as a machine and the employees as different parts of the machine. Thus, the employees are
just seen as a means of production.

2.1. Characteristics of the Classical School

 It practices a centralized and integrated system.
 It is more concerned with the amount of output than on the employees.
 It concentrates on detecting errors and correcting them once they occur.
 It sees employees as being relatively stable despite the change in the organization.
 It is built on an accounting model.
 It sees the employees as being alike and can’t be trained, so labor is not divided on the basis of different kinds of
job to be performed in the organization.
In the classical school of thought, we have those that lay emphasis on using technology to make the employee
more efficient in the organization; also we have those of differing views. These authors lay emphasis on using structure to

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make the employee more efficient in the organization. Because of these differing views, the classical school of thought is
divided into two aspects namely;
 The Scientific Management by Fredrick Winslow Taylor (1856-1915).
 Bureaucratic Management by Max Weber (1864-1920).
 Administrative or Process or Functional Management by Henri Fayol (1841-1925).

3. The Scientific Mangement Theory by Fredrick Winslow Talor (1856-1915)

Through the 1700’s and early 1800’s, there occurred a great Industrial Revolution in England that affected the
Western manufacturing and mining industries and forever affected the way organizations operate (Daniel, 1980; Fayol,
1949). The great industrial revolution brought about great changes that affected both the manufacturing and mining
world and has today spilled over to affect other sectors, changes like moving from craft to machine, hand-made to
machine-based manufacturing and unit production to mass production. It also affected the social life because people
moved from agriculture in the rural areas to take up factory jobs in the city. After the industrial revolution, academia’s and
management authors as well as management philosophers were seen pitching their views to manufacturing plant owners
on their different managerial theories (Gomes, et al, 2004).
Fredrick Winslow Taylor (1856-1915) an American is considered the father of Scientific Management theory. He
was a mechanical engineer who sought to improve industrial efficiency; he was one of the first management consultants
and in 1911, he summed up his efficiency techniques in a book and wrote The Principles of Scientific Management. Having
worked and gaining shop-floor experience as an apprentice patternmaker and machinist at Enterprise Hydraulic Works,
which was a pump-manufacturing company in Philadelphia, he also worked at several other places where he gained more
useful experience that helped him later to formulate his scientific theory. He worked at Midvale Steel Works as a machine-
shop laborer and was quickly promoted to time clerk, journeyman machinist, machine shop foreman, research director,
and finally chief engineer of the works. But it was in 1898 when he joined Bethlehem Steel to solve an expensive machine-
shop problem, that he was finally able to put his theory in full practical action, having studied engineering, he approached
the management of work as a science. From the experiences he gathered while working, he observed, measured, analyzed
and identified the best method for performing each job. Once this is determined, the methods were standardized for all
workers and economic incentives were given to motivate workers to follow the laid standards (Phelps, Paraytam, & Olson,
2007), this philosophy is what is known as Scientific Management or Taylorism. Taylor’s scientific management consisted
of four principles;
 Replace rule-of-thumb work methods with methods based on a scientific study of the task.
 Scientifically select, train, and develop each employee rather than passively leaving them to train themselves.
 Provide “Detailed instruction and supervision of each worker in the performance of that worker’s discrete task’
(Montgomery 1997:250).
 Divide work nearly equally between management and workers, so that the managers apply scientific
management principles to planning the work and the workers actually perform the tasks.

3.1. Critscim of Taylor’s Scientific Theory

Taylor was seriously criticized by so many authors, but one of the most prominent is Henry Mintz Berg (1979).
Mintz Berg said laying much emphasis on efficiency allows measurable benefits to overshadow less quantifiable social
benefits completely, and so social values get left behind.
Despite the enormous criticism, Taylor’s application of engineering principles to the work done in the factory
floor was instrumental in the creation and development of industrial engineering which is a branch of engineering.

3.2. The Bureaucratic Management Theory by Max Weber (1864-1920)

Born Maximilian Karl Emil Weber in April 21st 1864, a German, he grew up to become a sociologist, philosopher,
jurist and political economist. He is referred to as the father of bureaucracy. In the late 1800’s Weber disliked that many
European organizations were managed on personal family-like basis and that employees were loyal to individual
supervisors rather than to the organization, he believed that organizations should be managed impersonally and that a
formal organizational structure where specific rules were followed was important. In other words, he did not think
authority should be based on a person’s personality, rather he thought that authority should be passed from individual to
individual as one person left the position for another person which is to say authority is based on the office. In the year
1904, while in the final stages of writing his famous book, The Protestant Ethic and the Spirit of Capitalism, Weber not only
addressed this issue, but he also developed his concept ‘bureaucracy’. Weber is known as the “Father of Organization
Theory’. Weber’s theory was not that of perfection but of systemization, Roth and Wittich (1978) viewed this as moving
managerial practice and organizational design towards more logical ways of operating. This known personal and objective
form of organization was called bureaucracy.
Weber believed that all bureaucracy has the following characteristics:
 Well defined hierarchy.
 Division of labor and specialization.
 Rules of regulation.
 Impersonal relationship between manager and employee.
 Competence.
 Rerecords keeping.

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The advantage of bureaucracy according to (Dieh, 1923; Weber, 1946; Wren & Bedeian, 2009) includes the following:
 Labor being divided so that authority and responsibility are clearly defined.
 Offices or positions being organized in a hierarchy of position.
 All employees being selected on the basis of technical qualifications earned by normal examinations, education,
or training’
 Employees being career professional rather than “politicians’, and working for fixed salaries and pursuing
“careers’ in their respective fields although a measure of flexibility is attained by electing higher-level officials
who presumably express the will of an electorate’
 All employees being subjected to formal rules and other controls regarding the performance of their duties’
 Rules and other controls being impersonal and uniformly applied in all cases.

4. Crticism of Weber’s Bereaucracy Theory

Weber’s bureaucratic model was highly criticized, (crozier, 1963: 239), said there is no ‘ideal’ form of
bureaucracy and termed it to be static and rigid, and also leads to inefficiency. Despite the critique of the bureaucratic
model, Weber’s bureaucratic theory is still practiced today in all organizations because of the elements of hierarchy, unity
of command, career orientation, distinction between line and staff, impersonality, record keeping etc., all provides an
organization with a structure. Weber laid emphasis on managing the total organization unlike Taylor that concentrated on
scientifically increasing output in the organization.

5. General Administrative / Functional Process Theory Henri Fayol (1841-1925)

A French mining engineer and industrialist, born in 1841in Constantinople which is current day Istanbul, an
author and director of mines. He developed the general theory of business administration that is famously known as
Fayolism. Fayol was the one that came up with the functions of management which are:
 Planning.
 Organizing,
 Commanding’
 Co-coordinating.
 Controlling.
Apart from the functions of management, Fayol also came up with the famous 14 principles of management and they
are as follows:
 Division of labor.
 Authority and Responsibility.
 Discipline.
 Unity of command.
 Subordination of individual interest to general interest.
 Remuneration.
 Unity of direction.
 Centralization and Decentralization.
 Scalar chain.
 Order.
 Stability of tenure of personnel.
 Equity.
 Initiative.
 Spirit de corps.

5.1. Criticism of Fayol’s General Administrative Theory

It was seen to be too formal, giving attention to the organization and not the employees; it also overlooked the
informal organization within the organization and also lacked how the organization can motivate, communicate and or
lead the employee.
Despite these criticisms, Henri Fayol’s five (5) functions and fourteen (14) principles of management are still used today in
organizations because of its importance.

5.2. Crticism of Classical Theme Theory

Classical philosopher’s laid emphasis on ways to manage work more efficiently and on increased output. It
focused solely on the organization and shop floor, where decisions are taking at the shop floor and sent to management for
implementation, overlooking all other aspects that also make the organization function efficiently; aspects like informal
groups, employee welfare etc. these lapses lead to emergence of a new school of thought called the neoclassical school of
thought.

6. Neoclassical or Behavioral School of Thought (Theme)

This is the extended version of the classical theory but here, it arose out of the perceived weaknesses of classical
theory. The behavioral sciences were included into the management of the organization; they tried to solve the problems
caused by the classical theorists. In this theory, they found out that the survival or otherwise of the organization are
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greatly affected or influenced by human actions or the lack of it, the neoclassical theory postulates that the organization is
a combination of both formal and informal forms of organization (which was ignored by the Classical theorists).

6.1. Characteristics of Neoclassical or Behavioral School of Thought

 It focuses on motivation.
 Individuals are diversely motivated and so want to satisfy certain peculiar needs.
 Communication is vital for measuring efficiency.
 Team work is key for organizational performance.
 The Neoclassical school of management thought is divided into the following:
 Human Relations perspective.
 Psychological perspective.

7. Human Relations Perspective

They focused on the psychological and sociological processes that influence an employee’s performance like their
attitude, rights, actions, what motivates them, group dynamics etc. and the various relationships of individuals and groups
when designing an organization so as to be able to stimulate people to cooperate in achieving company objectives
(Baridam, 2002). The founders of behavioral sciences of management are:
 Mary Parker Follet.
 Elton Mayo.

7.1. Mary Parker Follet (1868-1933)

An author, advisor, American social worker and a contemporary of both Taylor and Lillian Gilbreths, called the
“Mother of Modern Management’ based on her emphasis on the employees instead of the machines. She was the one who
defined management as “the art of getting things done through people’, and also propagated the principle of “integration,’
or non-coercive power-sharing based on the use of her concept of “power with’ rather than “power over’.

7.2. Elton Mayo and His Hawthorn Studies

In the late 1920’s and early 1930’s, Elton Mayo and some of his colleagues were called to the Hawthorne Plant of
the Western Electrical Company in Cicero Philadelphia, to conduct a series of studies on the effect of illumination on
employee productivity. They conducted a series of five (5) studies in total and came up with a startling revelation. Their
research brought to the fore that employees are not just motivated by money only but by other factors present in the
organization, like work itself, group dynamics etc. This revelation by Mayo and his colleagues famously known as the
Hawthorne Studies, brought a full glare and awareness of the influence of people and their relationships on organizational
productivity and has made them the object of study in the management field (Baridam, 2002).
The conclusion mayo had after conducting the studies are :
 Workers’ attitudes are associated with productivity’
 The workplace is a social system and informal group influence could exert a powerful effect on individual
behavior.
 The style of supervision is an important factor in increasing workers’ job satisfaction.
 Organizations should take steps to assist employees in adjusting to organizational life by fostering collaborative
systems between labor and management.

7.3. Criticisms of Mayo’s Hawthorne Studies

Viteless (1953:205), did not see how practical or feasible that an employee would not be concerned about the size
of his paycheck, and would not respond to efforts of enhancing financial incentives. While Carey (1967; 403), said the
research is worthless and the researchers were naive and at best, the research lacked scientific merit and wondered how it
gained prominence. Others critiqued their lack of taking into consideration the role of unions, attitudes bring into the work
place as well as class consciousness etc., and moreover, the Hawthorne Plant was not your typical plant because it is a very
unpleasant place to work in.
Despite these criticisms, the Hawthorne experiment brought attention to the attitude of workers, their needs and
the role of the work group to the social environment within the organization. According to Koontz et al (1980:51), ‘what
the Hawthorne studies dramatized was that humans are social – that business operations are a matter not merely of
machinery and methods but also of gearing these with the social system to develop a complete socio-technical system’, for
Donnelly et al (1984), they see it as the beginning of new people-oriented insights to the attention of managers'. The
Hawthorne experiment brought about a number of other studies of human behavior.

8. Psychological Perspective
Writers in this area are of the notion that every human being no matter low or high his position on whatever scale of
values he chooses, is a living example of the matter of psychology. As such, the psychological perspective concentrates
basically on the study of the different facets of the individual and his relationship with the work environment (Baridam,
2001: 46). The Psychological theory was brought about the short comings in the Human Relations approach.
This includes the following theorists:
 Abraham Maslow.

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 Douglas McGregor.
 Fredrick Herzberg.

8.1. Abraham Harold Maslow (1908-1970)

Abraham Maslow was a 20th century psychologist who was born and raised in Brooklyn, New York. He attended the
college of the City of New York where he spent only a semester before transferring to the University of Wisconsin, where
he earned a bachelor’s degree in Psychology in 1930, in 1931, he earned an MA, and in 1934 a Ph.D. Having published
several research papers in many reputed journals, he is best known for his Motivation Theory of Hierarchy of Needs.
Among the various motivational theories postulated by many scholars, Maslow’s hierarchy of needs is quite prominent.
Maslow’s hierarchy of needs is a theory in psychology proposed by Abraham Maslow in his 1943 paper (a theory of human
motivation). Unlike Sigmund Freud who studied sick people (what actually makes people sick); Maslow chose to focus his
research on what actually made people happy.
Maslow in 1935, worked at the Columbia Teachers college in New York, where he was mentored by Alfred Adler. In
the year 1937, he worked as a psychological instructor at Brooklyn College where he met and formed a relationship with
Max Wertheimer a gestalt psychologist and Ruth Benedict an anthropologist. These two were not only his friends, but
became the subject of his research. He observed and assessed them and this formed the foundation for his theories for
human potential and psychological well-being.
Maslow’s Hierarchy of needs theory postulates that individuals in organizations are motivated to perform by a desire
to satisfy a set of internal needs which are based on the following assumptions ;-
 Individuals have certain needs that influence their behavior. Only unsatisfied needs can influence behavior,
satisfied needs do not act as motivators.
 Needs are arranged in an order of importance, or hierarchy from the basic physiological to the complex self-
actualization needs.
 An individual’s needs at any level on the hierarchy emerge only when the lower needs are reasonably well
satisfied.
Maslow proposed five (5) need sets in an ascending order, which represent the order of importance to the
individual, and he said once one need is reasonably satisfied, it stops being a motivator, and the individual does not ascend
to the next level of need until the previous need is reasonably satisfied. Maslow’s hierarchy of needs is often portrayed in
the shape of a pyramid in an ascending order of importance. And the needs are:
 Basic needs: good pay, food, house, sex, water
 Safety needs: protection against harm, job security, and the lack of basic needs
 Social needs: the need for companionship, affection and acceptance as belonging to a group
 Esteem needs: the need to have a reliable, strongly based, high opinion of oneself (self-esteem) and to have the
regard of others also known as prestige.
 Self-actualization: need to attain worth and skills, and to be what one thinks he can be. This model of reward
postulates that as soon as a need is fulfilled, it becomes dormant, and the next need becomes dominant and the
person’s focus is hinged towards actualizing this next need on the hierarchy.
The hierarchical pyramid of Maslow’s motivational needs is as shown in the figure below;-

Figure 1: Maslow’s Hierarchy of Needs

Source: Desk Research (2020)

8.2. Crticism of Maslow’s Hierarchical Needs

Maslow’s hierarchy of needs has come under heavy criticism by other scholars amongst whom are Lawler and
Suttle (1972), having carried a study in two different companies, came up with the conclusion that there was little or no
evidence at all that a hierarchy of needs existed. They also believed that an individual can have multiple needs as a
motivator as opposed to having just one at time. Lawler and Suttle also disputed that the needs are not static but dynamic
i.e., they can change at any giving time, depending on the individual’s state of mind and depending on the condition he is
presently facing. According to Maslow, a satisfied need is no longer a motivator; but (Locke in Dunnette, 1976; 1309)
debunked this fact, saying individual needs are never fully or permanently satisfied due to a single action.

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Finally, It was also argued that what someone prioritizes is not what another prioritizes, which is to say that in the
hierarchy, the basic or physiological needs which is first on the list can be number three on someone else’s list, since
humans are different, their needs, wants etc. are never the same.
Despite the criticism from other scholars, MASLOW HIERARCHY OF NEEDS THEORY, remains relevant and important to
managers because individual needs, no matter how defined, are critical factors in understanding human behavior.
Maslow’s hierarchy of needs was based on personal observation/experience which is known as experiential reality,
non-empirical method because there was no experiment done, he made a statement and others like McGregor carried out
an experiment based on this statement and came up with his own motivational theory of X and Y.

9. Douglas Mcgregor’s X and Y Theory (1906-1958)

Douglas McGregor, a professor of management at the world renowned Massachusetts Institute of Technology
(MIS) Cambridge was born in 1906. He was a social psychologist, who consistently studied the assumptions about human
behavior which underlines managerial actions. He made so many contributions to the Neo-Human relations approach or
Organizational Humanism, but the most popular is that of “The Human Side of Enterprise (1960)’, in which he said, we can
improve our ability to control only if we recognize that control consists in selective adaptation to human nature rather
than in attempting to make human nature conform to our wishes; that is to say top management should consistently ask
about the best way to manage people. This has made McGregor to come up with two assumptive theories: - Theory X and
Theory Y.

9.1. Theory X: Traditional Assumptions

In this theory, McGregor postulates that humans will want to avoid work if they can because of the dislike for it,
and this leads to coercion, control, threats, direction and punishment for things to get done in the organization. The
employee lacks ambition, does not want responsibilities but always wants security. For McGregor, he said to get this kind
of employee motivated, is to use the “carrot and stick’ method, which is essentially the reward and punishment method.
That is, if management wants things done in the organization (that is to attain its set objectives or goals), top management
has to rely on monetary incentives, praise, force and or threats, before the employee is motivated to work at optimal level.
Just like the Scientific Management by Fredrick Taylor, employees are closely supervised and controlled at every level in
the organization. But because this theory leads to retaliatory behavior such as unionism, poor quality of workmanship etc.,
and also because the employee getting to a certain level is no longer motivated by money primarily but by higher needs;
McGregor came up with an alternative motivational theory called Theory Y.

9.2. Theory Y: The Alternative Assumptions

Unlike the Theory X worker who dislikes work, McGregor postulates that Theory Y worker loves to work, does not
need to be coerced into working or cajoled into putting his all into working and achieving the organizational goal/goals.
Here, the employee is creative, loves taking responsibilities, loves challenges and derives satisfaction when being
challenged; the employee also works without much supervision, loves freedom (independent) and loves guiding others,
the employee is selfless and works in the interest of the organization. McGregor realizes that what motivates Theory Y
workers are esteem and self-actualization.
In conclusion, while Theory X worker is lazy and needs to be forced to work, Theory Y worker is hardworking and does not
need to be coerced into working; Theory X uses punishment and reward (carrot and stick) as motivator, Theory Y
emphasizes on team work and participation, esteem and self-actualization needs as motivators.

9.3. Criticism of Mcgregor’s The0ry X and Y

McGregor’s theory X was criticized because if given the chance, an X worker will climb and achieve what a Y
worker can do. Lately McGregor’s theory X and Y is seen as outdated representing two extremes.

10. Fredrick Herzberg (April 1923-January 2000)

Herzberg a psychologist and behavioral scientist came up with what is called Motivation-Hygiene Theory, also
known as Two-Factor Theory or Satisfier-Dissatisfier Theory of Motivation and behavior, having consistently studied the
problem of human motivation in the work place. He wanted to find the relationship between organizations work and
man’s needs (that is, what do people want from their jobs?).
According to Herzberg, there are some job factors that brings about satisfaction and some job factors that prevent
dissatisfaction. And he classified these job factors into two categories, namely the Hygiene factors and the motivational
factors.
 THE HYGIENE FACTORS: - these are also known as DISSATISFIERS OR MAINTENANCE FACTORS because they
those factors which are essentially needed for motivation in the work place.
 The hygiene factors symbolize the psychological needs which the employees want and expect to be fulfilled. These
needs are:-
 Salary: - this should be commensurate with his work
 Company policy and administrative policies: - this should not be rigid, there should be flexible hours etc.
 Fringe benefits: - employees should be offered free health care and this should also be extended to his family
members etc.

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 Physical working conditions: - the work place should be safe and clean and equipment’s maintained and up to date
etc.
 Interpersonal relations: - relationship between employee and management should be cordial.
 Job security: - the organization must provide job security for the employee.
 It should be noted that according to Herzberg, that these factors are motivators and the absence of it will not bring
about satisfaction but dissatisfaction; in other words, hygiene factors are those factors which when adequate or
reasonable in the work place makes them happy and not dissatisfied.

11. Motivational Factors

According to Herzberg, the hygiene factors cannot be regarded as motivators, (since they are more or less the rights of
the employee); but on the other hand, the motivational factors yield positive satisfaction, these factors are inherent to
work, motivates the employee for a superior performance, and these factors are satisfiers. These motivational factors are:-
 Recognition: - employees should be praised and recognized for their accomplishments by the managers for a job
well done, example, a trophy, plaque etc.
 Growth and promotion: - employee should be rewarded with promotion when needed and there should be room
for him to grow and not stagnated at a level for too long to motivate him to do better at all times.
 Responsibility: - employee should be given responsibilities from time to time (that is delegation) to make him feel
accomplished, etc.
 Meaningfulness of the work: - the job itself should be interesting and challenging for the employee to perform and
get motivated.
 Hertzberg postulates that the motivational factors can also be called GROWTH FACTORS and their presence will
lead to satisfaction

12. Criticism of Neoclassical Theory

Neoclassical laid emphasis on understanding human behavior and motivating and encouraging employees and
their achievement, here decisions are taken by management and sent down for implementation.

12.1. Quantitative Theory of Management

A major contributor to this school of thought is R.M. Hodgetts. Here the emphasis is developing and employing
mathematical models, theories, and hypotheses pertaining to phenomena, and it is any data that is numerical form such as
statistics, percentages etc. Fredrick Winslow Taylor is said to be one of the early proponents of Scientific Management
techniques, and his principles laid the foundation for the study of quantitative managerial problems. The characteristics of
quantitative theory include:
 Generation of models, theories and hypotheses.
 Collecting empirical data.
 Modeling of data.
 Analysis of data.
 Experimental control.
 Variable manipulation.
 Development of instruments.
 Measurement methods.
 The branches of quantitative management include:
 Management Science.
 Operation Management.
 Management Information System.

12.2. Management Science

This is an approach that is aimed at increasing decision effectiveness through the use of sophisticated
mathematical methods and statistical methods. R. M. Hodgetts, says the quantitative school which he also called the
Management Science School, consists of those theorists who see management as a body of quantitative tools and
methodologies designed to aid today’s manager in making the complex decisions related to operations and productions.

12.3. Operations Management

This is the function or field of expertise that is primarily responsible for managing the production and delivery of
an organizations products and services. In operations management, people use quantitative techniques of forecasting,
inventory analysis, statistical quality control methods, networking models etc. in areas such as inventory management,
production planning, designing the production process, purchasing raw materials, storing and selling the final products
and similar areas in manufacturing units.

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13. Management Information System (Mis)

This is the field of management that focuses on designing and implementing computer-based information systems
for use by management. Large amount information is quickly processed (conversion of raw data into useful information)
to make useful business decisions.

13.1. Assumptions of Quantitative Management Theory

 Organizations are decision-making units which make efficient decisions through mathematical models.
 Business problems can be solved through joint efforts of team that consists of experts from the fields of
mathematics, statistics, accountancy, engineering etc.
 Business problems can be expressed in mathematical models where relevant factors can be quantified in
numerical terms. Management is seen as mathematical process expressed in terms of mathematical symbols and
relationships.

13.2. Critiscm of Quantitative Management Theory

Though accepted, its application is limited only in planning and control functions. Human behavior cannot be
predicted through mathematical equations. The mathematical models are used for analyzing results rather than used as a
basis for making decisions. Managers are usually constrained by cost, time and in data collection methods that is relevant
for decision-making, and so decisions that a-re available are used, though not optimal but satisfying.
Despite these criticisms, quantitative theory is very useful where data can be collected.

14. Systems School of Management Thought

Systems management philosophers developed the concept that management is an open system in that
organizations interact with the environment to gain resources. This theory also complimented both the scientific and
human relations approach. Some famous scholars of this school of thought are:
 Daniel Katz
 Ludwig Von Bertalanffy

14.1. Daniel Katz (1903-1998)

An American psychologist, his research of the connections between social systems and individual psychology led
in laying the foundation to organizational psychology. One of his major works is his contribution on open system theory in
his book “The Social Psychology of Organizations’ (1966), in which he co-authored with Robert L. Khan.

14.2. Ludwig Von Bertalanffy (1901-1972)

He was an Australian born biologist and referred to as the founder of general systems theory (GST), Weckowicz
(1989). Because of his profound contributions going beyond biology and interacting with other fields like, education,
history, sociology, cybernetics, psychology (interdisciplinary) etc., Bertalanffy sees the systems theory as the inter-
relationships between elements that all together form the whole, Bertalanffy sees the system as an open system constantly
interacting with the external environment. His major contribution in the sociology field is the concept of information,
communication, feedback etc.
The major purpose behind systems school research was to understand the external conditions that organizations
face and how to handle these conditions. They saw the organization as an open system, that interacts with its environment,
while the environment interacts with the organization by providing and accepting valued resources from the organization,
that is, the organization produces its product, sells to the customers, the customers tell the organization if they like the
product or not. The systems school of thought sees actions taken by the organization as being influenced by outside
factors.

15. Contingency School of Management Thought

This theory sprang up from the scientific, behavioral and systems approaches. Here, the philosophers opined that
there is no one best way to management or to lead an organization. The optimal course of action is dependent (contingent)
upon the internal and external situation. The situation that faces a manager, creates the management style or approach to
use, which is to say, what is the most appropriate response in one situation may not work in another situation and so a
contingent leader will effectively apply his or her own leadership style to every given situation. This theory was birthed
during the 1950’s after conducting researches in Ohio State University and University of Chicago (University of Michigan
Survey Research Centre), on the effect of leadership behavior. Both researches came up with similar findings but called
them by different name. While Ohio University Researchers categorized their findings as:
 Consideration leader behaviors as including building good rapport and interpersonal relationships and showing
support and concern for subordinates, and
 Initiating structure leader behaviors as providing structure like role assignment, planning, and scheduling etc., to
ensure task completion and goal attainment.
 The University of Michigan categorized theirs as follows:
 Relation-oriented behavior, and
 Task-oriented behavior.

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 One of the famous theorists of this school of thought is Joan Woodward, who in the late 1950’s and 1960’s argued
that contingencies such as technology play a role in how an organization centralizes its authority, formalizes rules
and procedures, attributes span of control, etc. Fred Edward Fiedler (1964), is one of the major proponents of the
contingency theory. He looked at trait as the main factor that determines a good and effective leader and then
came up with the following:
 There is no one best way to manage an organization.
 A leader must be able to identify which management style will help achieve the organization’s goals in a particular
situation.
 The main component of Fiedler’s theory is the emphasis of the Least Preferred Co-worker (LPC) scale test which
measures a manager’s leadership orientation from 16-22, a high score indicates a relation-oriented leader while a
low score indicates a task-oriented leader.
However, while Fiedler focused on leadership traits, William Richard Scott (1981), Paul R. Lawrence and Jay
Lorsch (1967), as well as James D. Thompson, all focused on the impact contingency factors have on the organizational
structure (structural contingency theory). They all opined that the best way an organization can function depends on the
nature of the environment the organization finds itself.
Gareth Morgan (2007) saw contingency theory as an open system that needs careful management to satisfy and
balance internal needs and to adapt to environmental circumstances, he also said management must be concerned above
all else with achieving alignments and good fits, as well as different types of or species of organizations are needed in
different types of environments.

15.1. Criticsm of Contingency School of Thought

The major criticism of the contingency school of thought is that it is reactive and not proactive; it does not follow
the concept of “universality of principles’ which applies to specific management situations and can be costly in terms of
money and time since every situation provides its own problems and its unique way of solving it, this has made it
impossible to provide theoretical foundation upon which management principles can be based.

15.2. Contemporary School of Management Thought

Management research and practice continues to evolve and new approaches to the study of management continue to
advance. This paper will briefly review two contemporary approaches which are:
 Total quality management (TQM).
 Learning organization.

16. Total Quality Management

This consists of three major contributors namely:
 Deming
 Juran
 Crosby
TQM or Total Quality Management is an approach or philosophy that focuses on managing the entire organization to
deliver quality goods and services to customers. It was first implemented after World War 11 in Japan. TQM has four major
elements which are:
 Employee involvement is essential in preventing quality problems before they occur.
 A customer focus means that the organization must attempt to determine customer needs and wants and deliver
products and services that address them.
 Organizations should always seek out other organizations that perform a function or process more effectively and
using them as a standard, or benchmark, to judge their own performance, as well as also try to improve on the
adopted function or process.
 The organization should over time, continuously change and improve all areas of the organization.

16.1. Total Quality Management by William Edwards Deming (October 14, 1900- December 20, 1993)
Deming believes that quality about people and not products, he defined quality as how efficient the management
circle is in planning, implementing and making improvements in the project; he also sees quality as how satisfied the
costumers are ( Deming; 1982). An American engineer, statistician, professor, author, lecturer and management
consultant. In one his books titled The New Economics for Industry, Government, and Education, Deming propagated the
work of Walter Shewhart (Statistical Process Control), which he called the “Shewhart Cycle’
This was first propagated by Walter A. Shewhart in the form of Statistical Process Control (SPC) when he was
working at Bell Telephone Laboratories in 1923, but it was wholly embraced by the Americans; and later it was first
implemented in the Western Electrical Company in the plant Hawthorn by Joseph Juran in 1926, still it didn’t catch on not
until Edwards W. Deming went to Japan on invitation to lecture on Shewharts Statistical Process Control after the war with
the leaders of Japanese industry between July and vAugustb1950 in Tokyo at the Hakone Convention Center, that he
started propagating his views and came up with Total Quality Control, and the Japanese unlike the Americans embraced it
whole heartedly, having surviving the war and having nothing to lose implemented Denims views and what is known now
as TQM.

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Having embraced Deming, they also invited Juran over to lecture in 1954, and his ideas too were also embraced, these two
philosophers whom the Americans rejected and the Japanese embraced started having breakthrough in their factories,
industries and organizations, which lead to a boom in their economy. This made the Americans in the late 1970s and
1980s to scramble to adopt TQM for the fear of being left behind. Because of his contribution and how successful it
became. Deming is seen as the father of TQM. It should be noted that while Deming said TQM should be done holistically
like a crusade revolution, Juran says it should be done in piece meal that is it should be a gradual process just like any
other management process. His book which gained so much accolades Quality Productivity and Competitive Position, Out of
the crisis (1982-1986), contain his famous 14 principles of TQM.
W. Edward’s 14 principles of TQM are:
 Create consistency of purpose for improving products and services.
 Adopt the new philosophy of TQM
 Cease dependence on inspection to achieve quality.
 End the practice of awarding business on price alone, instead, minimize total cost by working with a singular
supplier.
 Improve constantly and forever every process for planning, production and service.
 Institute modern method of training on the job.
 Adopt and institute leadership.
 Drive out fear.
 Break down barriers between staff areas.
 Eliminate slogans, exhortations and targets for the workforce and numerical goals for management.
 Eliminate numerical quotas for the workforce and numerical goals for management.
 Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system.
 Institute a vigorous program of education and self-improvement for everyone.
 Put everybody in the company to work accomplishing the transformation.

16.2. Criticism of Edwards Tqm

Deming was criticized by some authors as his work though good for improvement but not creative or innovative.
Others on the hand criticized his approach as not being effective for generating new products nor being able to penetrate
new markets. Juran on his part criticized Deming on relying heavily on statistical methods. Though heavily criticized for
his work, Deming’s 14 points of TQM is still used till date by adoption by assimilation and integration into management
practice because it focused on people rather than systems, and it is taught by business schools around the world.

16.3. Joseph Moses Juran (December 24, 1904- Feburary 28, 2008)
For Juran, quality is when a product meets the satisfaction of the consumer, as well as all the activities in which a
business engages in; to ensure that the product meets customer needs (Juran, 1967). A Romanian born American engineer
and management consultant, he was a stickler for quality and quality management. Unlike Deming that focused on the use
of SPC, Juran rather laid emphasis on managing for quality. So when called to Japan to lecture Japanese top and middle
executives in (1954), he concentrated on quality management. Just like Deming, his work was also rejected in America but
fully embraced in Japan and ion the 1970’s, the Japanese economy boomed. And just like Deming, after quality control
crisis in America in the 1980’s, his work was finally embraced. Though relying heavily on Taylor’s scientific model, Juran
inculcated and is widely credited for adding the human dimension to quality management by insisting on the education
and training of managers. He posited that human relation problems were to be isolated, and resistance to change was the
root cause of quality issues. His work on quality manage transcends manufacturing companies to also include
nonmanufacturing companies. Juran came up with 3 principles known as The Juran Trilogy; and they are:
 Quality planning
 Quality control
 Quality improvement
These 3 principles are summed up as; without change there will be a constant waste; during change there will be
increased costs, but after the improvement, margins will be higher and the increased coats are recouped, Juran (1967).

16.4. Philip Bayard Crosby (June 18, 1926-August 18, 2001)

A business man and author, he was one of the major contributors to management theory and quality management
practices. He initiated the Zero Defects program at the Martin Company when he was the quality control manager. In 1979,
one of his published books that made him famous is Quality is Free which was brought about by the Americans losing
customers to Japanese Products due to the differences in quality. In his book, Crosby talked about a major principle of
“doing it right the first time’ (DIRFT), and also included the following principles which are:
 The definition of quality is conformance to requirements (requirements meaning both the product and the
customers’ requirements).
 The system of quality is prevention.
 The performance standard is zero defects (relative to requirements).
 The measurement of quality is the price of nonconformance.

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Crosby was of the notion that an organization that establishes good quality management principles will see
savings returns that more than pays for the cost of the quality system, (that is to that quality is free). Which in a nut shell
means, it is less expensive to do it right the first time than to pay for rework and repairs.

All over the world, TQM has been implemented by many organizations, and has enhanced performance.

17. Learning Organization

The contemporary organization faces unprecedented environmental and technological changes. Thus one of the
biggest challenges for organizations is to continuously change in a way that meets the demands of this turbulent
competitive environment. The learning organization can be defined as one in which all employees are involved in
identifying and solving problems, which allows the organization to continually increase its ability to grow, learn and
achieve its purpose. The organizing principles of the learning organization are not about efficiency, but problem solving.
Three key aspects of the learning organization are:
 Team based structure.
 Empowered employees.
 Open information.
Major contributor to this school of thought is Peter Senge and his colleague (1990). This is a new concept in the
contemporary management theory. The main features of a learning organization are:
 Personal mastery.
 Shared vision
 Systems thinking
 Mental models
 Team learning
The importance of a learning organization is to:
 Always improve innovative ways of doing things and remaining competitive
 Improved efficiency
 Improve effectiveness
 Increase output
 Enhancing company image

17.1. Criticism of Learning Organization

The fear of being put down or shut down when views are aired or shared is one of the limitations of a learning
organization due to the long time practice of traditional hierarchical structures. Also, size is another major factor because
the bigger the organization, the harder it is to share internal knowledge, trust becomes a luxury and communication
becomes less effective, and also affects inter-employee relationships negatively.

18. Conclusion
From the 1970’s to date, we can see the various management schools of thought interwoven with one another.
The table below summarizes the school of thought and the themes that collectively describe them

THEORY YEAR THEME

CLASSICAL:
Scientific 1880’s Laid emphasis on organizational efficiency, increased output and shop
Bureaucratic 1920’s floor, where decisions are taken at shop floor and implemented at top
Administrative 1940’s level management.
NEOCLASSICAL:
Human Relations 1930’s
Behavioral Science 1950’s Laid emphasis on understanding human behavior in the organization by
QUANTITATIVE: motivation.
Management Science 1940’s
Operations Management 1940’s Laid emphasis on increasing quality of managerial decision-making
Management Information through the application of mathematical and statistical methods.
Systems 1950’s-1970s
SYSYTEMS 1950’s
Understanding the organization as a system that transforms input into
CONTINGENCY: output while in constant interaction with its environment.
Leadership 1950’s-1964
Structural 1967-1981 Laid emphasis on different situations calling for different leadership styles
Open System 2007 as well as internal and external environment affecting leadership in the
CONTEMPORARY: organization. This is to say there’s no one best way to run an organization.
TQM 1900’s Laid emphasis on quality control and quality and effective product to the
Learning organization 1990 consumers
Laid emphasis on innovation and open information
Table 1: Different School of Thought and Their Themes
Source: Desk Research (2020)

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