2.3. Management Theory and EPWP 1 Definition of Management
2.3.2 Management theories
2.3.2.4 Management Theory provides a comprehensive understanding of management and the processes involved. It comprises the following
approaches (Kreitner, 1995:40-63):
i) The universal process approach
Kreitner (1995:40-63) notes that Henri Fayol’s (1949) universal approach assumes that all organizations, regardless of purpose or size, require the same six (6) management processes, viz; policy-making; organising;
controlling; personnel provision and utilisation; financing; and determining work methods and procedures. It was assumed that all activities and processes within Public Administration could be evaluated in terms of these processes (Van Der Waldt and Du Toit, 1999:63). Furthermore, this approach assumes that this rational process can be reduced to separate functions and principles of management. The former is depicted in figure 2.1 and the latter in table 2.2. These are acknowledged for resulting in effectiveness and efficiency, thus managers are advised to always ensure compliance with these principles and managerial functions (Starling, 2008:32).
Figure 2.1 portrays managerial functions as discussed in the universal process approach.
Figure 2.1: The managerial functions in the management process
Managing for EPWP effectiveness
and efficiency
Source: Adapted from: Kreitner (1995:14)
In Figure 2.1 the primary management function is planning and future courses of action are formulated at this level. Managers thereafter make intelligent and ethical decisions to choose among alternative courses of action. After the decision making process, managers assume organising function; viz, considering the structure and the chain of command, division of labour and assignment of responsibility. This function assists in ensuring the efficient use of human resource, thus the next function focuses on staffing.
This function comprises recruiting, training and developing people who can contribute to the organisation. Once staff has been employed, managers are expected to communicate the technical knowledge, instructions, rules, and
Controlling Planning
Leading Decision making
Motivating Organising
Communicating Staffing
information required. It should be acknowledged that communication is a two way process.
Motivating is an important aspect of management. The employees need to be motivated to pursue collective objectives by satisfying needs and meeting expectations with meaningful work and valued reward. Managers lead by example and serve as role models and adapt their management style to the demands of the situation. Finally, managers apply their control function. They compare desired results with actual results and take the necessary corrective action.
The managerial functions are relevant to the management of EPWP and if these are carefully applied they can enhance EPWP management processes.
EPWP managers are therefore encouraged to adapt these managerial functions as they are value add. Both managerial functions and Fayol’s fourteen universal principles depicted in table 2.1 to be integrated and considered to advance EPWP management.
Table 2.1 portrays Fayol’s fourteen universal principles which are applicable to the management of the EPWP.
Table 2.1 Fayol’s fourteen universal principles Principle Description
Division of work Specialisation of labour is necessary for organisational stress.
Authority The right to give orders much accompany responsibility.
Discipline Obedience and respect help an organisation run smoothly.
Unity of command Each employee should receive orders from only one superior.
Unity of direction The effort of everyone in the organisation should be coordinated and focused in the same direction.
Subordination of individual interest to the general interest
Resolving the tug of war between personal and organisational interest in favour of the organisation is one of management’s greatest difficulties.
Remuneration Employees should be paid fairly in accordance with their contribution.
Centralisation The relationship between centralisation and decentralisation is the matter of proportion; the optimum balance must be found for each organisation.
Scalar chain Subordinate should observe the formal chain of command unless expressly authorised.
Order Both material things and people should be in their proper places.
Equity Fairness that results from a combination of kindliness and justice lead to devoted and loyal service.
Stability and
tenure of
personnel
People need time to learn their jobs.
Initiative One of the greatest satisfactions is formulated and is carrying out.
Esprit de corps Harmonous effort among individuals is the key to ogarnisational success.
Source: Adapted from: Kreitner (1995:42)
In view of the above, a combination of management processes, managerial functions, principles and characteristics of management is a concoction for effectiveness and efficiency.
iii) The attributes of excellence: A modern unconventional approach
This approach promotes decentralized and value-driven organizations dedicated to the humane treatment of employees, innovation, experimentation and customer satisfaction. It identifies the following eight (8) attributes of excellence:
· A bias towards action;
· Being close to the customer;
· Autonomy and entrepreneurship;
· Productivity through people;
· Being hands-on and value driven;
· Sticking to the knitting attitude;
· Simple form, lean staff; and
· Simultaneous loose-tight properties (Kreitner, 1995:40-63).
The management approach used by the Department to manage the EPWP will be explored in line with the above approaches.
It is also important to note that Allison’s (1982) model captures the following main characteristics of management (Hughes, 2003:45-46):
· Establishing objectives and priorities for the organization;
· Devising operational plans to achieve these objectives;
· Organizing and staffing;
· Directing personnel and the personnel management system;
· Controlling performance;
· Dealing with external units;
· Dealing with independent organizations;
· Dealing with the press and the public; and
· Planning, organizing, leading, co-ordinating, and controlling (Du Toit et al., 1998:172).
These characteristics are relevant to the Department of Public Works and are thus also important for the management of the EPWP. Some of these characteristics inter alia, DPW objectives and priorities, DPW operational plans, organizing and staffing will be elaborated on later in this chapter.
Development Management Theory is also pertinent to the study as EPWP falls within this category.