MODELS AND THEORIES OF MANAGEMENTDR DOUGLAS NISBET

PGDBA 101 Strategic Leadership and Management Skills

Learning Objectives

• To explain about the place of models and theory in Management Education

• To examine the development of management theory with particular regard to the 4 underlying philosophies:

– Rational Goal Model

– Internal Process Model

– Human Relations Model

– Open Systems Model

2

What’s the point of coming to Business

School to learn about Business Management?

Surely we’d me much better learning at work?

I’ve got intuition!!

What do we mean by a

Model?Model???

What is a model in Management Education?• Well, it’s not Kate Moss!

• A model (or theory) is a way of representing a more complex reality

• By simplifying and focusing on essential elements and their relationships the model helps us understand the complexity of the reality of business management and how change may affect it

• The basic model used in the core text is the input-output model

5

The Internal Environment

Fig 2.1, Boddy p 38

Competing Values Framework

Fig 2.2, Boddy p41

Rational Goal Models

• Adam Smith looking back on the Industrial Revolution

• Frederick Taylor’s Scientific Management.• Henry Ford's mass production• Operational Research (OR)• Still relevant?

Internal Process Models

• Bureaucratic Management (Max Weber)- rules and regulations- impersonality- division of labour- hierarchical structure- authority structure- rationality

• Administrative Management (Henri Fayol)• Still relevant?

Human Relations Models

• Hawthorne Experiment (Elton Mayo)

Mayo_on_Hawthorne

Open Systems Models

Fig 2.4, Boddy p 55

ContingencyHuman Relations

Open Systems

Internal Process

Rational Goal

Contingency

Approaches to Change

Table 2.3, Boddy p60

Conclusion• Competing values model offers alternative perspectives

on managing• Each depends on assumptions about the context in which

people are managing and working• Enables constructive thinking about current practices,

and whether they are the best way to add value