Managment Theory
Managment Theory
MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
Section 1: group 3
Prepared by
1. Abeba Yeshiwas
2. Bereket Aberra
3. Kebron Solomon
4. Makida Berhane
5. Masresha Abebaw
6. Mihiret Ejigsemahu
Values
☐ ☐
Are leaders transparent, honest, and ☑ ☐ ☐ making processes, which is indicative of
accountable? their expertise in designing and
Is there an effective system for decision- ☑ implementing governance structures.
making and delegation of tasks?
Does the NGO have a strategic plan in place
that aligns with its mission, vision, and
☑ ☐ ☐ Their strategic planning is also strong,
ensuring they systematically align with goals
☐ ☐
values? ☑ ☐ ☐ they aspire to achieve.
Does the organization set clear goals and Strategic Plane is long term plane that
☑ indicate the road map to vision or objective
Human Resource Planning
Is there transparency in financial reporting ☑ set budget for project FH has bine complaint
and accountability to stakeholders? to donor’s requirement.
Any party how have interest on the
organization based on this interest FH
parodically issues a general and as well as
special purpose.
While effective financial management
practices ensure transparency and
accountability across stakeholders
Do the NGO form partnerships with other
organizations to achieve its mission?
☑ ☐ ☐ Furthermore, the organization has established
partnerships and collaborations while
Collaboration
☐ ☐
☑ ☐ ☐
Partnership
Does the organization collaborate effectively appropriately evaluating its impact and
with stakeholders such as donors, community promptly utilizing lessons learned.
members, and government entities? ☑ The organization is working in partnership
with Government, churches, and other social
and
Overall, the table highlights the importance of effective management practices for Food for the
Hungry, and discussed how a clear mission statement, strong leadership, effective planning,
human resource management, financial management, partnership and collaboration, and impact
evaluation can all contribute to successful management. As shown on the table Food for the
Hungry has a strong management practice in place, which align with various management
theories. By implementing these practices, it is better positioned to achieve its goals and make a
positive impact on society.
3. One management theory that could be applicable for NGOs like Food for the Hungry is the
contingency theory. This theory suggests that there is no one-size-fits-all approach to
management, and that the most effective management style depends on the specific situation
at hand. For NGOs like Food for the Hungry, which operate in diverse and complex
environments, this approach could be particularly useful in adapting to the unique challenges
they face. Contingency theory encourages managers to be flexible and take a situational
approach to decision-making, which could help NGOs better respond to the needs of the
communities they serve.
In which their management practices should be tailored to the unique challenges and
opportunities they face in their efforts to alleviate hunger. By using the contingency theory,
NGOs can better understand the factors that contribute to their success or failure, and adjust their
strategies accordingly. This can ultimately lead to more efficient and effective use of resources,
and better outcomes for the communities they serve.
4. a) Frederick Winslow Taylor's principle of "job standardization through developing the
science of work and functional foremanship" involves breaking down tasks into smaller,
more efficient components and having separate managers oversee each component. Here are
some potential pros and cons:
Pros:
Improved efficiency: By breaking down tasks into smaller components and streamlining each
one, productivity and efficiency can increase.
Greater consistency: With standardized methods of completing each task, it's more likely
that each product or service provided will be consistent in quality.
Higher output: By optimizing the way work is done, output can increase, potentially leading
to higher profits for the organization.
Cons:
Loss of creativity: When tasks are broken down into smaller components, employees may
have less room for creativity in how they complete their work.
Negative impact on employee morale: Jobs can become repetitive and monotonous when
standardized to such a great extent, which can lead to low morale and employee burnout.
Potential for dehumanization: Taylor's principles focus heavily on improving efficiency and
output, which can dehumanize the workplace by viewing employees merely as tools to
accomplish a goal.
It's worth noting that Taylor's principles have been criticized as being overly mechanistic and
inhumane, leading to negative impacts on employee well-being. Additionally, many modern
management experts emphasize the importance of empowering employees and encouraging
creativity in work, rather than focusing solely on efficiency and output.
b) Henri Fayol's 14 principles of management are often considered foundational to modern
management theory, and centralization, unity of command, division of labor, and esprit de corps
are among the key principles that he outlined. Here are some criticisms that have been leveled at
each of these principles:
Centralization:
Critics argue that centralization can lead to an excessive concentration of power in the hands
of a few leaders, which can lead to inefficiencies and lack of innovation.
It can also slow down decision-making processes, as all decisions must be made by a small
group of individuals rather than being decentralized to individual departments or teams.
Unity of command:
Critics argue that the idea of "one boss" can be overly simplistic and fail to take into account
the complex interdependencies that exist within organizations.
In dynamic and complex environments, strict adherence to unity of command can lead to
issues with coordination and communication across the organization.
Division of labor:
Critics argue that division of labor can lead to a loss of creativity and innovation among
employees who are assigned narrow, specialized roles.
It can also lead to demotivated employees who feel their work lacks meaning or purpose.
Esprit de corps (team spirit):
Critics argue that team building and the creation of esprit de corps can be difficult to achieve,
particularly in large and diverse organizations.
It may also create a potential divide between those who are part of the "in-group" and those
who are not, leading to distrust among team members.
It's worth noting that while these criticisms exist, these principles have also been widely adopted
by many successful organizations. The effectiveness of each principle will depend on the specific
context in which they are applied. Ultimately, organizations must weigh each principle's potential
benefits against its costs in light of their unique goals and circumstances.
c) What is Bureaucracy?
Bureaucracy is a system in which important decisions are made by state officials rather than by
elected representatives. It is characterized by rigid procedures, hierarchical structures, and a
complex set of rules and regulations. Bureaucracy can be found in many different types of
organizations, including government agencies, corporations, and non-profit organizations. While
bureaucracy can help create order and efficiency, it can also lead to slow decision-making, lack
of flexibility, and a sense of disconnection between the people and the institutions that govern
them.
There are several strategies that can minimize the weaknesses of bureaucracy and make it a more
effective principle of management. Here are some key strategies:
1. Encourage communication: One of the biggest drawbacks of bureaucracy is that it can stifle
communication within an organization. To counteract this, managers should establish clear
channels of communication, encourage regular meetings and team-building activities, and give
employees opportunities to provide feedback.
2. Streamline processes: Bureaucracy can be a slow-moving and inflexible system that can
hamper productivity. By streamlining bureaucratic processes, managers can cut down on
inefficiencies and make the system more effective.
3. Provide clear guidelines and training: Bureaucracy is based on strict rules and procedures,
and employees need to understand these guidelines to work within the system. Providing clear
guidelines and training can help ensure that employees work together smoothly and without
confusion.
4. Foster accountability: One of the benefits of bureaucracy is that it can provide a strong
framework for accountability. By clearly defining roles and responsibilities and setting up
systems for monitoring progress, managers can ensure that everyone is held accountable for their
actions.
5. Empower employees: Finally, it is important to give employees the autonomy to make
decisions within the bounds of the bureaucratic system. This can help them feel more invested in
their work and increase their sense of ownership over the organization's success.
These strategies can help minimize the weaknesses of bureaucracy and make it a more effective
principle of management.
d) System theory is a way of thinking about organizations as complex, interconnected systems. It
suggests that organizations are made up of many parts that work together to achieve a common
goal, and that these parts are interdependent and influence each other. System theory also
emphasizes the importance of feedback and communication within an organization, as well as
the need to consider external factors that can impact the system. Overall, system theory helps
managers to better understand the complex nature of organizations and make more informed
decisions.
Systems theory is an important framework in the field of management that emphasizes the
importance of understanding organizations as complex and interconnected systems. Its basic
elements help explain why systems theory is such a powerful tool for managers.
1. Holism: Systems theory views organizations as holistic systems, meaning that they are made
up of many interconnected parts that cannot be understood in isolation. By taking a holistic
approach, managers can better understand how different parts of the organization work together
and how changes in one area will impact the system as a whole.
2. Negative entropy: Another key aspect of systems theory is the concept of negative entropy,
which refers to an organization's ability to maintain order and stability despite constant changes
within the environment. This is achieved through the intake of information, feedback loops, and
adaptation to changing circumstances.
3. Dynamic hemostasis: Systems theory also recognizes that organizations are constantly
changing and adapting, with multiple feedback loops that help maintain dynamic hemostasis or
balance. This requires managers to be able to anticipate changes and adjust course accordingly.
4. Equifinality: Finally, systems theory recognizes the concept of equifinality, which is the idea
that there can be multiple paths to achieving the same goal. This means that there is no one-size-
fits-all approach to management and that different strategies may be required depending on the
specific context of the organization.
By understanding these basic elements of systems theory, managers are better equipped to
analyze and understand complex organizational dynamics, anticipate changes, and implement
effective strategies for achieving their goals.