Post on 14-Apr-2018
7/29/2019 BCom V EoMgt M 2
1/51
GOOD MORNINGThe conventional definition of management
is getting work done through people, butreal management is developing people
through work.
http://thinkexist.com/quotation/the_conventional_definition_of_management_is/221306.htmlhttp://thinkexist.com/quotation/the_conventional_definition_of_management_is/221306.htmlhttp://thinkexist.com/quotation/the_conventional_definition_of_management_is/221306.htmlhttp://thinkexist.com/quotation/the_conventional_definition_of_management_is/221306.htmlhttp://thinkexist.com/quotation/the_conventional_definition_of_management_is/221306.htmlhttp://thinkexist.com/quotation/the_conventional_definition_of_management_is/221306.htmlhttp://thinkexist.com/quotation/the_conventional_definition_of_management_is/221306.htmlhttp://thinkexist.com/quotation/the_conventional_definition_of_management_is/221306.html7/29/2019 BCom V EoMgt M 2
2/51
7/29/2019 BCom V EoMgt M 2
3/51
INTRODUCTION
TOEVOLUTION OF
MANAGEMENTTHOUGHT
7/29/2019 BCom V EoMgt M 2
4/51
Environmental Factors Influencing
Management Thought
Economic Influences
The availability, production, and distribution of
resources within a society.
Social Influences
The aspects of a culture that influence
interpersonal relationships. Political Influences
The impact of political institutions on
individuals and organizations.
7/29/2019 BCom V EoMgt M 2
5/51
Technological Influences
The advances and refinements in any of the
devices that are used in conjunction with
conducting business.
Global Influences
The pressures to improve quality, productivity,
and costs as organizations attempt tocompete in the worldwide marketplace.
7/29/2019 BCom V EoMgt M 2
6/51
Chronological Development of
Management Perspectives
7/29/2019 BCom V EoMgt M 2
7/51
The Evolution ofManagement
Theory
7/29/2019 BCom V EoMgt M 2
8/51
Classical Perspective:
Rational, scientific approach to management
make organizations efficient operating
machines.
Scientific Management Bureaucratic Organizations
Administrative Principles
7/29/2019 BCom V EoMgt M 2
9/51
Classical Perspective on
ManagementFocuses on the
individual workers
productivity
Focuses on the
functions of
management
Focuses on
the overall
organizational
system
7/29/2019 BCom V EoMgt M 2
10/51
7/29/2019 BCom V EoMgt M 2
11/51
Frederick W.Taylor
7/29/2019 BCom V EoMgt M 2
12/51
Scientific Management
Frederick W. Taylor (1856-1915) Father of Scientific Management.
attempted to define the one best way to perform
every task through systematic study and otherscientific methods.
believed that improved management practices lead
to improved productivity.
Three areas of focus:
Task Performance
Supervision
Motivation
7/29/2019 BCom V EoMgt M 2
13/51
Task Performance
Scientific management incorporates basicexpectations of management, including:
Development of work standards
Selection of workers
Training of workers
Support of workers
7/29/2019 BCom V EoMgt M 2
14/51
Supervision
Taylor felt that a single supervisor couldnot be an expert at all tasks.
As a result, each first-level supervisor should
be responsible only workers who perform acommon function familiar to the supervisor.
This became known as Functional
Foremanship.
7/29/2019 BCom V EoMgt M 2
15/51
Motivation
Taylor believed money was the way tomotivate workers to their fullest
capabilities.
He advocated a piecework system in whichworkers pay was tied to their output.
Workers who met a standard level of production
were paid a standard wage rate.
Workers whose production exceeded the standard
were paid at a higher rate for all of their production
output.
7/29/2019 BCom V EoMgt M 2
16/51
The Gilbreths
Frank Gilbreth
Specialized in time and motion studies todetermine the most efficient way to perform
tasks. Used motion pictures of bricklayers to
identified work elements (therbligs) such aslifting and grasping.
7/29/2019 BCom V EoMgt M 2
17/51
Lillian Gilbreth
A strong proponent of better workingconditions as a means of improving efficiencyand productivity.
Favored standard days with scheduled lunchbreaks and rest periods for workers.
Strived for removal of unsafe working conditionsand the abolition of child labor.
7/29/2019 BCom V EoMgt M 2
18/51
Administrative Management
The study of how to create an organizational
structure that leads to high efficiency
and effectiveness.
7/29/2019 BCom V EoMgt M 2
19/51
Henri Fayol (18411925)
First recognized that successful managers
had to understand the basic managerial
functions.
Developed a set of 14 general principles of
management.
Fayols managerial functions of planning,
leading, organizing and controlling are
routinely used in modern organizations.
7/29/2019 BCom V EoMgt M 2
20/51
Fayols General Principles of Management
1. Division of work
2. Authority and
responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of
individual interest to the
common good
7. Remuneration of
personnel
8. Centralization9. Scalar chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de corps
7/29/2019 BCom V EoMgt M 2
21/51
Division of Labor/Work:
Allows for job specialization. jobs can have too much specialization leading to
poor quality and worker dissatisfaction.
Authority and Responsibility both formal and informal authority resulting from
special expertise.
Unity of Command Employees should have only one boss. If not, chaos
and confusion.
7/29/2019 BCom V EoMgt M 2
22/51
Line of Authority
A clear chain of command from top to bottomof the firm.
Centralization
The degree to which authority rests at the topof the organization.
Unity of DirectionA single plan of action to guide the
organization.
7/29/2019 BCom V EoMgt M 2
23/51
Equity
The provision of justice and the fair and
impartial treatment of all employees.
Order
The arrangement of employees in order to
optimize value for the organization and
provide career opportunities.
Initiative
The fostering of creativity and innovation by
encouraging employees to act on their
own.
7/29/2019 BCom V EoMgt M 2
24/51
Discipline
Obedient, applied, respectful employees are
necessary for the organization to function.
Equitable Remuneration of Personnel
An equitable and uniform payment system thatmotivates employees to contribute to
organizational success.
7/29/2019 BCom V EoMgt M 2
25/51
Stability of Personnel Tenure
Long-term employment is important for the development ofskills that improve the organizations performance (it also
makes employees feel secure, but beware
complacency).
Subordination of Individual Interest to the Common
Interest
The interest of the organization takes precedence over that
of the individual employee.
7/29/2019 BCom V EoMgt M 2
26/51
Esprit de corps
Comradeship and shared enthusiasm foster
devotion to the common cause (the success
of the organization).
7/29/2019 BCom V EoMgt M 2
27/51
Bureaucratic Management
Focuses on the overall organizational
system.
Bureaucratic management is based upon:
Firm rules
Policies and procedures
A fixed hierarchy
A clear division of labor
7/29/2019 BCom V EoMgt M 2
28/51
Max Weber (18641920)
A German sociologist and historian whoenvisioned a system of management that
would be based upon impersonal and rational
behaviorthe approach to management now
referred to as bureaucracy.
Division of labor
Hierarchy of authority
Rules and procedures Impersonality
Employee selection and promotion
7/29/2019 BCom V EoMgt M 2
29/51
Webers Forms of Authority
Traditional authority
Subordinate obedience based upon custom or
tradition (e.g., kings, queens, chiefs).
Charismatic authority
Subordinates voluntarily comply with a leader
because of his or her special personal
qualities or abilities (e.g., Martin Luther King,Gandhi).
7/29/2019 BCom V EoMgt M 2
30/51
Rational-legal authority
Subordinate obedience based upon the
position held by superiors within the
organization (e.g., police officers, executives,supervisors).
7/29/2019 BCom V EoMgt M 2
31/51
Bureaucratic Hierarchical Power Structure
7/29/2019 BCom V EoMgt M 2
32/51
Behavioral Perspective:
The study of how managers should behave in
order to motivate employees to achieve
organizational goals.
7/29/2019 BCom V EoMgt M 2
33/51
Followed the classical perspective in the
development of management thought.
Acknowledged the importance of human
behavior in shaping management style
Is associated with:
Mary Parker Follett
Elton Mayo Douglas McGregor
Chester Barnard
7/29/2019 BCom V EoMgt M 2
34/51
Mary Parker Follett: (1868-1933)
Concluded that a key to effective
management was coordination.
Felt that managers needed to coordinate
and harmonize group effort rather than
force and coerce people.
Believed that management is a
continuous, dynamic process.
Felt that the best decisions would be made
by people who were closest to the
situation.
7/29/2019 BCom V EoMgt M 2
35/51
Follett on Effective Work Groups
Four principles of coordination to promote
effective work groups:
1. Coordination requires that people be in direct
contact with one another.
2. Coordination is essential during the initial
stages of any endeavor.
3. Coordination must address all factors and
phases of any endeavor.
4. Coordination is a continuous, ongoing
process.
7/29/2019 BCom V EoMgt M 2
36/51
Elton Mayo:
Conducted the famous Hawthorne
Experiments. Hawthorne Effect
Productivity increased because attention was paid
to the workers in the experiment. Phenomenon whereby individual or group
performance is influenced by human behavior
factors.
His work represents the transition fromscientific management to the early human
relations movement.
7/29/2019 BCom V EoMgt M 2
37/51
The Hawthorne Studies
Studies of how characteristics of the work
setting affected worker fatigue andperformance at the Hawthorne Works of
the Western Electric Company from 1924-
1932.
Worker productivity was measured at various
levels of light illumination.
7/29/2019 BCom V EoMgt M 2
38/51
Douglas McGregor: (1906-1964)
Proposed the Theory X and Theory Ystyles of management.
Theory X managers perceive that their
subordinates have an inherent dislike of workand will avoid it if at all possible.
Theory Y managers perceive that their
subordinates enjoy work and that they willgain satisfaction from performing their jobs.
7/29/2019 BCom V EoMgt M 2
39/51
Comparison of Theory X and Theory Y
Assumptions
Factor Theory X Assumptions Theory Y Assumptions
Employee attitude Employees dislike work and. Employees enjoy work and
toward work will avoid it if at all possible. will actively seek it.
Management view Employees must be directed, Employees are self-motivated
of direction coerced, controlled, or threatened and self-directed toward achieving
to get them to put forth adequate effort. organizational goals.
Employee view Employees wish to avoid responsibility; Employees seek responsibility;
ofdirection they prefer to be directed and told what they wish to use their creativity,
to do and how to do it. imagination, and ingenuity in
performing their jobs.
Management style Authoritarian style of management Participatory style of management
7/29/2019 BCom V EoMgt M 2
40/51
A management approach using rigorousquantitative techniques to maximize
productive use of organizational
resources.
Management Science Theory
7/29/2019 BCom V EoMgt M 2
41/51
1.Quantitative management
Characterized by its use of mathematics,
statistics, and other quantitative techniquesfor management decision making and
problem solving.
This approach has four basiccharacteristics:
1.A decision-making focus
2.Development of measurable criteria3.Formulation of a quantitative model
4.The use of computers
7/29/2019 BCom V EoMgt M 2
42/51
2.Operations management (Systems
Perspective)
An approach to problem solving based on
an understanding of the basic structure of
systems.
Environmental interaction
Open systemsmust interact with the external
environment to survive.
Closed systemsdo not interact with the
environment.
7/29/2019 BCom V EoMgt M 2
43/51
Basic Structure of Systems
7/29/2019 BCom V EoMgt M 2
44/51
3.Total Quality Management (TQM)
Focuses on analyzing input, conversion,and output activities to increase productquality. (Deming, Juran).
4.Management Information Systems(MIS)
Provide information vital for effectivedecision making and control.
7/29/2019 BCom V EoMgt M 2
45/51
The Contingency Perspective
A view that proposes that there is no one
best approach to management for all
situations.
Asserts that managers are responsible for
determining which managerial approach is
likely to be most effective in a given situation.
This requires managers to identify the key
contingencies in a given situation.
7/29/2019 BCom V EoMgt M 2
46/51
Blending Components into a Contingency
Perspective
7/29/2019 BCom V EoMgt M 2
47/51
Management in the 21st Century
William Ouchis Theory Z
Japanese-style approach to management
developed by William Ouchi
Advocates trusting employees and making them
feel like an integral part of the organization.
Based on the assumption that once a trusting
relationship with workers is established, productionwill increase.
7/29/2019 BCom V EoMgt M 2
48/51
Question
How has management theory and practice
evolved over the decades?
From what to what?
7/29/2019 BCom V EoMgt M 2
49/51
Management Evo lut ion
From process to people
From totalitarian to team
From command to consensus
From tall and rigid to flexible and flat From eyes-in to eyes-out.
7/29/2019 BCom V EoMgt M 2
50/51
ANY QUESTIONS???????
7/29/2019 BCom V EoMgt M 2
51/51