Principles of Management

Management Yesterday &

Today

CHAPTER-2

AFTER STUDYING CHAPTER Two AND LISTENING TO MY LECTUER, YOU SHOULD BE ABLE TO:

Historical Background Of Management. Classical Approach. Quantitative Approach. Behavioral Approach. Contingency/Contemporary Approach

OrganizationBehavior

Scientific Management

General Administration

SystemApproach

ContingencyApproach

Major Approaches Of Management

Ancient Management Egypt (pyramids) China (Great Wall)

Adam Smith Published “The Wealth of Nations” in 1776

Advocated the division of labor (job specialization) to increase the productivity of workers

Industrial Revolution Substituted machine power for human labor Created large organizations in need of management

The first studies of management, which emphasized rationality and making

organizations and workers as efficient as possible.

ClassicalApproach

Scientific Management

An approach that involves using the scientific method to determine the

“One Best Way” for a job to be done.

The “father” of scientific management Published Principles of Scientific Management (1911)

The theory of scientific management» Using scientific methods to define the “one best

way” for a job to be done» Putting the right person on the job with the correct

tools and equipment» Having a standardized method of doing the job» Providing an economic incentive to the worker

Fredrick Winslow Taylor

Focused on increasing worker productivity through the reduction of wasted motion

Developed the micro chronometer to time worker motions and optimize performance.

How Do Today’s Managers Use Scientific Management? Use time and motion studies to increase productivity Hire the best qualified employees Design incentive systems based on output

Frank and Lillian Gilbreth

General Administrative Theory

An Approach to management that focuses on describing what mangers

do and what constitutes good management practice.

Believed that the practice of management was distinct from other organizational functions like Finance, Production, Distribution, and other typical business functions.

Henri Fayol

Fayal's 14 principles of Management

Developed fourteen principles of management that applied to all organizational situations.1. Division of labor.2. Authority.3. Discipline.4. Unity of command.5. Unity of direction.6. Subordination of individual interests to the general interests.7. Remuneration.8. Centralization.9. Scalar chain.10.Order.11.Equity.12.Stability.13.Initiative.14.Esprit de corps.

Developed a theory of authority structures and relation in 1900s,called bureaucracy.

Bureaucracy. A form of organization characterized by

division of labor ,a clear defined hierarchy, detailed rules and regulations, and impersonal

relationships.

Max Weber.

Weber’s Ideal Bureaucracy

Quality Management

A philosophy of management driven by continual improvement in the quality of

work processes and responding to customer needs and expectations

oIntense focus on the customer.oConcern for continual improvementoProcess-focused.oImprovement in the quality of everything.oAccurate measurement.oEmpowerment of employees.

What is Quality Management?

Early Advocates

The study of the actions of people at work; people are the most important asset of

an organization

Early Advocates of OBEarly Advocates of OB

Hawthorne studies

A series of studies during the 1920s and 1930s that provided new insights into

individual and group behavior

• Experimental findingsExperimental findings Productivity unexpectedly increased under imposed Productivity unexpectedly increased under imposed

adverse working conditions.adverse working conditions. The effect of incentive plans was less than expected.The effect of incentive plans was less than expected.

• Research conclusionResearch conclusion Social norms, group standards and attitudes more Social norms, group standards and attitudes more

strongly influence individual output and work strongly influence individual output and work behavior than do monetary incentives.behavior than do monetary incentives.

A series of productivity experiments A series of productivity experiments conducted at Western Electric from 1927 to conducted at Western Electric from 1927 to

1932.1932.

The field of study concerned with the actions (behavior) of people at work.

Organization Behavior

A set of interrelated and interdependent parts arranged in a manner that

produces a unified whole.

System Approach

Basic Types of Systems

The Organization as an Open System

A management approach which says that organization are different, face different situations (contingencies), and require

different ways of managing

Contingency Approach

Popular Contingency Variables

• Organization size• As size increases, so do the problems of coordination.

• Routineness of task technology• Routine technologies require organizational

structures, leadership styles, and control systems that differ from those required by customized or non-routine technologies.

• Environmental uncertainty• What works best in a stable and predictable

environment may be totally inappropriate in a rapidly changing and unpredictable environment.

• Individual differences• Individuals differ in terms of their desire for growth,

autonomy, tolerance of ambiguity, and expectations.