LU 1 Management Evolution

INTRODUCTION TO BUSINESS MANAGEMENT
Learning unit 1 – Management theory evolution
2024 Programme
Learning unit 1 – Management theory evolution
Presented by Theuns FJ Oosthuizen
For the Department of Transport and Supply Chain Management

2
Learning outcomes Consult your learning

material. LU 1 covers the
following outcomes which
you need to successfully
complete when working
through the slides, notes,
After completing this learning unit, you should: textbook and presentations
• explain management theory and its importance.
• explain relevant behavioural approaches, considering the Human relations
movement and behavioural science, to management theory and the overall
contribution to management theory.
• explain the contribution of the systems management approach to management
theory.
• explain the contingency management approach to management theory.
• briefly present current management issues and trends.
Copyright TFJ Oosthuizen & UJ 3

Prescribed learning material
STRYDOM, J. (Ed). 5th ed. 2022. Principles of Business Management. Cape Town: OUPSA.
ISBN 978-0-19-074330-7. CHAPTERS 1, 2, 3, 7
When preparing LU 1 you
should consult your learning
material in conjunction with
the following chapters in this
prescribed textbook
Other sources/books you may consult:
- OOSTHUIZEN, TFJ & JACOBS, H. 2017. Management success a task focus. 3rd ed.
Johannesburg: Future Vision Business Consultants. CHAPTER 1 available as printed/ebook.
- LUSSIER, R.N. 2019. Management fundamentals: concepts, applications, skill development.
California, Thousand Oaks: SAGE Publishing.

3
Introduction See chapter 1 table 1.1

explaining the
developments leading-up
to the current 4IR, p15.
• The management theory concept

See chapter 3 on the
• Industrial revolution meaning of manager
and management p57.
• The manager
• The importance of management theory
• Development of theories
• Considering best management behaviour and practice
See chapter 6 and the

discussion on
management vs
leadership sect 6.3 and
refer to the next slide
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4
Organisational behaviour
(Human relations movement)
Human relations movement focuses on individuals working in

group settings. Let’s consider: See chapter 7 Maslow
- sect 7.3.2 and the
• Maslow – Hierarchy of needs theory next slide.
• McGregor – Theory X and Theory Y See chapter 7

McGregor - sect 7.4.2
• Herzberg – Two factor theory and the next slides.
• McClelland – Three-needs theory See chapter 7

Herzberg -sect 7.4.2
and the next slides.
See chapter 7
McClelland - sect 7.3.2
and the next slides.
Copyright FVBC
Organisational behaviour (Human relations movement)
Figure 7.2 Maslow’s hierarchy of needs
Self-actualisation
needs
(achieving full
potential)
Higher-order
Ego needs
needs
(e.g. achievement &
status)
Social needs
(e.g. friendship and a sense of Lower-order
belonging)
needs
Safety/security needs
(physical and psychological protection)
Physiological needs
(e.g. food, water, and shelter)
VIDEO:
Maslow – self actualisation
Watch the following YouTube video for interesting

information on characteristics associated with self-
actualisation
https://www.youtube.com/watch?v=oQBAzaqds4c
Table 7.1 McGregor – Theory X vs Theory Y
Theory X Theory Y
Managers believe that: Managers believe that:
• Employees are lazy. • Employees are ambitious.
• Employees avoid work and • Employees enjoy work and
responsibility where want responsibility.
possible. • They get satisfaction from
• Employees cannot be doing a good job.
trusted. • Employees can be trusted
• Employees need to be to work on their own.
closely supervised. See the opposing viewpoints
presented by these two
• Employees need to be theories. Modern day
managers support theory Y.
forced to work.
Copyright TFJ Oosthuizen & UJ
Fig 7.7 Herzberg – Two factor theory
Remember motivator
factors focus on the
content of the job.
Remember hygiene
factors focus on the
context of the job.
Copyright TFJ Oosthuizen & UJ

Fig 7.3.2.3 McClelland – (Three) Needs theory
• Affiliation (NAff) – desire to be liked and get on with

colleagues and people
• Achievement (NAch) – desire to be successful and
achieve goals
• Power (NPow) – Desire to control and influence others
According to the three needs theory

the dominance of one of these
needs will impact the leadership
behaviour of a manager in a
leadership position.

Systems approach This is not discussed
in your textbook, study
these slides in detail
Systems approach = the idea that organisations are made

up of interdependent parts that can only be understood by
looking at the whole. These parts influence one another:
Any system consists of three components, namely:

1. Inputs: all the things that are brought together in an
organisation
2. Processes: different management functions
3. Outputs: end result in the form of goods or services
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Systems approach
• The systems management approach identifies the

interdependence of variables which eventually constitutes to
the whole.
Transfor-
Inputs Outputs
mation
Feedback
The organisation can be the “whole”

consisting of departments OR the
organisation can be an element or part
of an industry
Copyright FVBC
Systems approach
Inputs = production factors, as discussed in chapter 1 section 1.4,

which are transformed (such as the product or retail process) into
final product and services = outputs
Transfor-
Inputs Outputs
mation
Feedback
Identify the four elements of the

systems approach.
Copyright FVBC
VIDEOS:
What is a system? The systems approach
https://www.youtube.com/watch?v=uHL-l_Iz_sA
Video example: Coca Cola – Systems theory

applied in their supply chain
https://www.youtube.com/watch?v=UBSOiHU
ctrY
Contingency approach
Understand the difference between the
systems approach and contingency
approach, as they are very similar, but do
have a difference in focus.
• The contingency approach (sometimes called the situational

approach) can therefore be defined as an approach that says
that organisations are different, face different situations
(contingencies) and require different ways of managing.
• See aspects of interdependence between parts:

• Systems approach – change in one part results in a
change in another part in the system.
vs.
• Contingency approach – managers needs to recognise
and manage these interdependencies as they differ for
each organisation.
Copyright FVBC
OTHER management issues and trends
This is not discussed in

• Quality management your textbook, study
these slides in detail
• Creating and adding value
• Globalisation
• Ethics
• Managing in an E-business world
• Learning organisation and Knowledge management
• Managing for sustainability
• Innovation
Look for the definitions and meaning in
your prescribed textbook and also
consult the other suggested books /
internet for more general information
relating to management.
Copyright FVBC
Conclusion
Well done you have completed learning unit 1!

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INTRODUCTION TO BUSINESS MANAGEMENT

Learning unit 1 – Management theory evolution

Presented by Theuns FJ Oosthuizen

For the Department of Transport and Supply Chain Management

Learning outcomes Consult your learning

Copyright TFJ Oosthuizen & UJ 3

Copyright TFJ Oosthuizen & UJ 4

Introduction See chapter 1 table 1.1

• The management theory concept

See chapter 6 and the

Human relations movement focuses on individuals working in

• McGregor – Theory X and Theory Y See chapter 7

• McClelland – Three-needs theory See chapter 7

Watch the following YouTube video for interesting

Copyright TFJ Oosthuizen & UJ

• Affiliation (NAff) – desire to be liked and get on with

According to the three needs theory

Copyright TFJ Oosthuizen & UJ 11

Systems approach = the idea that organisations are made

Any system consists of three components, namely:

• The systems management approach identifies the

The organisation can be the “whole”

Inputs = production factors, as discussed in chapter 1 section 1.4,

Identify the four elements of the

Video example: Coca Cola – Systems theory

• The contingency approach (sometimes called the situational

• See aspects of interdependence between parts:

This is not discussed in

Well done you have completed learning unit 1!

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