MANAGEMENT ii
, Evolution of Management Theory 3 8
Managing in a changing environment 9 14
Managerial decision-making 15 20
Individuals in an organisation 21 27
Motivation 28 35
Communication and interpersonal
36 43
relationships
RESOURCES FOR COMPILING THIS DOCUMENT:
Book Title: Contemporary Management Principles [Author(s):Vrba M J
Brevis Tersia Edition:2021 ISBN:9781485131007 Edition: 7th Chapters:
2,3,6,12,14,15]
STADIO MAN201 2023 Study Guide
Additional resources from Google.
CAUTION:
When doing assignments please reference the textbook and documents
as above and note that this document is merely A GUIDE NOT TO BE USED
SOLEY FOR ASSIGNMENTS AND CAN NOT BE REFERENCED! Please use correct
referencing in your assignments.
2 © Noted Summaries 2023 [Management II MAN201] www.notedsummaries.co.za
, HISTORY BACKGROUND
FAST CHANGING BUSINESS ENVIRONMENT = no single best way to manage a business organisation
[evolution of management theory & thoughts = satisfy changing needs of society = explains the dominant
issues & culture of a specific time, and management approaches to dealing with them]
W Ancient civilians = basic principles
W Egyptians > management principles = planning, organising & controlling [building pyramids]
W ALEXANDER THE GREAT = strategic plans, organising & leading by example
W 19th century entrepreneurs [Henry Ford, Alexander Graham Bell, Colonel Harland David Sanders] =
capitalists risking their own money in organisations > self-appointed managers risking it all alone and
take all the profits = ENTREPRENEURIAL CAPITALISM
W Technical innovation [Industrial Revolution] = cheaper & more affordable products = agrarian lifestyle →
industrialised lifestyle [exposed to working environment]
W Relocation of people from farms → cities = need created for new products & services [housing,
sanitation, transport, schools etc.]
SPLIT BETWEEN OWNERS & MANAERS = need for professional managers developed
WHY STUDY MANAGEMENT THEORY?
1. Not repeating mistakes > past managers
2. Better understand current principles
[Managers = know the different classical / contemporary management concepts, tools and techniques >
able to select best approached when needed]
Creation of management theory [THEORISTS]:
W Identify the dominant variables in the business environment
W Rely on observation of what happens in the real workplace
W Make assumptions
W Construct a model / theory [explains above points]
MANAGEMENT THEORIES
UNDERSTANDING THEORIES
Theories = based on assumptions
Productivity = complex issue > management theorists provide explanations & solutions to optimising a
business organisations scarce resources & improve productivity in the organisation
Subject = changed / shaped over time by environmental influences [social changes = society change in
attitude towards child labour, woman in the workplace etc.] THUS as environmental forces change =
management has to change = adapt / adjust to new realities
TECHNOLOGICAL CHANGES [implications > managers]
Work = knowledge based [knowledge workers = use brains and owns the means of production in the new
economy → knowledge (portable = mobile workforce > new organisational structures implemented >
networks / virtual organisations)
New organisational structures = affect way in which managers lead & control subordinate activities
The focus for managers is no longer on input-output only > well being of people & planet = major focus of
management decisions
3 © Noted Summaries 2023 [Management II MAN201] www.notedsummaries.co.za
, CLASSICAL APPROACHES
W Late 19th century > 1920’s
W Developed in response to changes in the environment requiring new way of thinking about managing
business organisation
FOCUS
= determine most efficient way to
perform specific tasks
SCIENTIFIC MANAGEMENT SCHOOL = issue of MANAGING work (not people)
Frederic W Taylor [mechanical engineer] > late 1800’s > ways to improve productivity of workers
Harvard Business Review = BUSINESS REENGINEERING
= one best way to perform any task
= money motivates workers [piecework system = basis for pay]
= has dehumanising effect on workers [treats workers like machines > movements comply with rigid
standards]
= approach ignores > workers are humans & have emotions
W Analysed each aspect of each task & measured everything measurable
W Physical movements slowing down production = eliminated & exact sequence of activities determines
= standard time for accomplishment of each task determined [ > describe performance objectives
quantitively = TIME AND MOTION STUDY]
u Frank & Lillian Gilbreth > work simplification [productivity] (Frank > movements of bricklayers +
determined what body movements could be eliminated]
u Henry L Gantt > productivity at shop-floor level → chart showing the relationship between work planned
& completed on one axis and time elapsed on the other → Gantt Chart
LIMITATIONS:
W Workers cannot be viewed as parts of a smoothly running machine
W Assumptions about the motivation of employees are stated too simplistically
W This approach creates the potential for the exploitation of labour → possible strikes by employees
W Can lead to the IGNORATION of the RELATIONSHIP between the organisation and its changing external
environment [focus remains on the internal issues > workers & productivity]
FOCUS
= focuses on the 5 elements
PROCESS [ADMINISTRATIVE] APPROACH [fuctions] of management which
forms a process.
→ grew from the need to find guidelines for managing complex organisations
Henri Fayol > greatest European management pioneer → described the practise of management as being
different from finance, production, marketing & other typical business functions
5 BASIC FUNCTIONS OF ADMINISTRATION
1. Planning [formulation of goals]
2. Organising [effective coordination of resources > attain set goals]
3. Commanding → leading / leadership [art of leading people]
4. Coordinating → activities of groups > provide unity of action > smooth functioning organisation
5. Controlling [seeing that everything was done according to the set plans & that the stated goals
were indeed attained]
14 GUIDELINES / PRINCIPLES FOR EFFECTIVE MANAGEMENT [FAYOL]
1. Division of labour → specialisation increases output > employees more efficient
2. Authority & responsibility → authority (responsibility) gives managers the right to give orders
3. Discipline → employees must respect rules governed by an organisation
4. Unity of command → employee receive orders from one superior
5. Unity of direction → same goal = one manager = one plan
6. Subordination of individual interest to the common good → interest of individuals > not take
precedence over interests of organisation
7. Remuneration → fair to employee AND employer
4 © Noted Summaries 2023 [Management II MAN201] www.notedsummaries.co.za
, Evolution of Management Theory 3 8
Managing in a changing environment 9 14
Managerial decision-making 15 20
Individuals in an organisation 21 27
Motivation 28 35
Communication and interpersonal
36 43
relationships
RESOURCES FOR COMPILING THIS DOCUMENT:
Book Title: Contemporary Management Principles [Author(s):Vrba M J
Brevis Tersia Edition:2021 ISBN:9781485131007 Edition: 7th Chapters:
2,3,6,12,14,15]
STADIO MAN201 2023 Study Guide
Additional resources from Google.
CAUTION:
When doing assignments please reference the textbook and documents
as above and note that this document is merely A GUIDE NOT TO BE USED
SOLEY FOR ASSIGNMENTS AND CAN NOT BE REFERENCED! Please use correct
referencing in your assignments.
2 © Noted Summaries 2023 [Management II MAN201] www.notedsummaries.co.za
, HISTORY BACKGROUND
FAST CHANGING BUSINESS ENVIRONMENT = no single best way to manage a business organisation
[evolution of management theory & thoughts = satisfy changing needs of society = explains the dominant
issues & culture of a specific time, and management approaches to dealing with them]
W Ancient civilians = basic principles
W Egyptians > management principles = planning, organising & controlling [building pyramids]
W ALEXANDER THE GREAT = strategic plans, organising & leading by example
W 19th century entrepreneurs [Henry Ford, Alexander Graham Bell, Colonel Harland David Sanders] =
capitalists risking their own money in organisations > self-appointed managers risking it all alone and
take all the profits = ENTREPRENEURIAL CAPITALISM
W Technical innovation [Industrial Revolution] = cheaper & more affordable products = agrarian lifestyle →
industrialised lifestyle [exposed to working environment]
W Relocation of people from farms → cities = need created for new products & services [housing,
sanitation, transport, schools etc.]
SPLIT BETWEEN OWNERS & MANAERS = need for professional managers developed
WHY STUDY MANAGEMENT THEORY?
1. Not repeating mistakes > past managers
2. Better understand current principles
[Managers = know the different classical / contemporary management concepts, tools and techniques >
able to select best approached when needed]
Creation of management theory [THEORISTS]:
W Identify the dominant variables in the business environment
W Rely on observation of what happens in the real workplace
W Make assumptions
W Construct a model / theory [explains above points]
MANAGEMENT THEORIES
UNDERSTANDING THEORIES
Theories = based on assumptions
Productivity = complex issue > management theorists provide explanations & solutions to optimising a
business organisations scarce resources & improve productivity in the organisation
Subject = changed / shaped over time by environmental influences [social changes = society change in
attitude towards child labour, woman in the workplace etc.] THUS as environmental forces change =
management has to change = adapt / adjust to new realities
TECHNOLOGICAL CHANGES [implications > managers]
Work = knowledge based [knowledge workers = use brains and owns the means of production in the new
economy → knowledge (portable = mobile workforce > new organisational structures implemented >
networks / virtual organisations)
New organisational structures = affect way in which managers lead & control subordinate activities
The focus for managers is no longer on input-output only > well being of people & planet = major focus of
management decisions
3 © Noted Summaries 2023 [Management II MAN201] www.notedsummaries.co.za
, CLASSICAL APPROACHES
W Late 19th century > 1920’s
W Developed in response to changes in the environment requiring new way of thinking about managing
business organisation
FOCUS
= determine most efficient way to
perform specific tasks
SCIENTIFIC MANAGEMENT SCHOOL = issue of MANAGING work (not people)
Frederic W Taylor [mechanical engineer] > late 1800’s > ways to improve productivity of workers
Harvard Business Review = BUSINESS REENGINEERING
= one best way to perform any task
= money motivates workers [piecework system = basis for pay]
= has dehumanising effect on workers [treats workers like machines > movements comply with rigid
standards]
= approach ignores > workers are humans & have emotions
W Analysed each aspect of each task & measured everything measurable
W Physical movements slowing down production = eliminated & exact sequence of activities determines
= standard time for accomplishment of each task determined [ > describe performance objectives
quantitively = TIME AND MOTION STUDY]
u Frank & Lillian Gilbreth > work simplification [productivity] (Frank > movements of bricklayers +
determined what body movements could be eliminated]
u Henry L Gantt > productivity at shop-floor level → chart showing the relationship between work planned
& completed on one axis and time elapsed on the other → Gantt Chart
LIMITATIONS:
W Workers cannot be viewed as parts of a smoothly running machine
W Assumptions about the motivation of employees are stated too simplistically
W This approach creates the potential for the exploitation of labour → possible strikes by employees
W Can lead to the IGNORATION of the RELATIONSHIP between the organisation and its changing external
environment [focus remains on the internal issues > workers & productivity]
FOCUS
= focuses on the 5 elements
PROCESS [ADMINISTRATIVE] APPROACH [fuctions] of management which
forms a process.
→ grew from the need to find guidelines for managing complex organisations
Henri Fayol > greatest European management pioneer → described the practise of management as being
different from finance, production, marketing & other typical business functions
5 BASIC FUNCTIONS OF ADMINISTRATION
1. Planning [formulation of goals]
2. Organising [effective coordination of resources > attain set goals]
3. Commanding → leading / leadership [art of leading people]
4. Coordinating → activities of groups > provide unity of action > smooth functioning organisation
5. Controlling [seeing that everything was done according to the set plans & that the stated goals
were indeed attained]
14 GUIDELINES / PRINCIPLES FOR EFFECTIVE MANAGEMENT [FAYOL]
1. Division of labour → specialisation increases output > employees more efficient
2. Authority & responsibility → authority (responsibility) gives managers the right to give orders
3. Discipline → employees must respect rules governed by an organisation
4. Unity of command → employee receive orders from one superior
5. Unity of direction → same goal = one manager = one plan
6. Subordination of individual interest to the common good → interest of individuals > not take
precedence over interests of organisation
7. Remuneration → fair to employee AND employer
4 © Noted Summaries 2023 [Management II MAN201] www.notedsummaries.co.za
