Evolution of Mgt

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Introduction to Management

Course Instructor:

Kanwal GurleenLecturer, LSB

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Learning Objectives

Historical Background of Management

Explain why studying management history is important.

Describe some early evidences of management practice.

Scientific Management

Describe the important contributions made by FredrickW. Taylor and Frank and Lillian Gilbreth.

Explain how todays managers use scientific

management.


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General Administrative Theory

Discuss Fayols contributions to management theory.

Describe Max Webers contribution to management

theory. Explain how todays managers use general administrative

theory.

Quantitative Approach

Explain what the quantitative approach has contributed tothe field of management.

Discuss how todays managers use the quantitativeapproach.

Learning Objectives


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Toward Understanding Organizational Behavior

Describe the contributions of the early advocates of OB.

Explain the contributions of the Hawthorne Studies to the

field of management. Discuss how todays managers use the behavioral

approach.

The Systems Approach

Describe an organization using the systems approach.

Discuss how the systems approach helps usmanagement.

Learning Objectives


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The Contingency Approach

Explain how the contingency approach differs from theearly theories of management.

Discuss how the contingency approach helps usunderstand management.

Current Issues and Trends

Explain why we need to look at the current trends and

issues facing managers. Describe the current trends and issues facing managers.

Learning Objectives


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Historical Background of Management

Ancient Management

Egypt (pyramids) and China (Great Wall)

Venetians (floating warship assembly lines)

Adam Smith

Published The Wealth of Nationsin 1776Advocated the division of labor (job specialization) to increase

the productivity of workers

Industrial Revolution

Substituted machine power for human laborCreated large organizations in need of management


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Exhibit 21 Development of Major Management Theories


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Major Approaches to Management



Quantitative Management

Organizational Behavior

Systems Approach

Contingency Approach


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Fredrick Winslow Taylor

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 ajob 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.


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Exhibit 22 Taylors Four Principles of Management

1. Develop a science for each element of an individuals work,which will replace the old rule-of-thumb method.

2. Scientifically select and then train, teach, and develop theworker.

3. Heartily cooperate with the workers so as to ensure that allwork is done in accordance with the principles of the science

that has been developed.

4. Divide work and responsibility almost equally betweenmanagement and workers. Management takes over all work

for which it is better fitted than the workers.


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Scientific Management (contd)

Frank and Lillian Gilbreth

Focused on increasing worker productivity through

the reduction of wasted motion

Developed the microchronometer to time worker

motions and optimize work performance

How Do Todays Managers Use Scientific

Management?

Use time and motion studies to increase productivity

Hire the best qualified employees

Design incentive systems based on output


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Henri Fayol

Believed that the practice of management was distinct

from other organizational functions

Developed fourteen principles of management that

applied to all organizational situations


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Exhibit 23 Fayols 14 Principles of Management

1. Division of work.2. Authority.

3. Discipline.

4. Unity of command.

5. Unity of direction.

6. Subordination ofindividual intereststo the generalinterest.

7. Remuneration.8. Centralization.

9. Scalar chain.

10. Order.

11. Equity.

12. Stability of tenureof personnel.

13. Initiative.

14. Esprit de corps.


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Quantitative Approach to Management

Quantitative Approach

Also called operations researchormanagementscience

Evolved from mathematical and statistical methods

developed to solve WWII military logistics and quality

control problems


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Understanding Organizational Behavior

Organizational Behavior (OB)

The study of the actions of people at work; people are

the most important asset of an organization

Early OB Advocates

Robert OwenHugo Munsterberg

Mary Parker Follett

Chester Barnard


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The Hawthorne Studies (19271932)

Conducted by Elton Mayo and associates at

Western Electric

Illumination studyworkplace lighting adjustments

affected both the control and the experimental groups

of production employees.

Group studyimplementation of piecework incentive

plan caused production workers to establish informal

levels of acceptable individual output.

Interview programconfirmed the importance of

human behavior in the workplace.


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The Systems Approach

System Defined

A set of interrelated and interdependent parts

arranged in a manner that produces a unified whole.

Basic Types of Systems

Closed systemsAre not influenced by and do not interact with their

environment (all system input and output is internal).

Open systems

Dynamically interact to their environments by taking in inputsand transforming them into outputs that are distributed into

their environments.


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Exhibit 26 The Organization as an Open System


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Implications of the Systems Approach

Coordination of the organizations parts is

essential for proper functioning of the entireorganization.

Decisions and actions taken in one area of the

organization will have an effect in other areas ofthe organization.

Organizations are not self-contained and,

therefore, must adapt to changes in theirexternal environment.


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The Contingency Approach

Contingency Approach Defined

Also sometimes called the situational approach.

There is no one universally applicable set of

management principles (rules) by which to manage

organizations.

Organizations are individually different, face different

situations (contingency variables), and require

different ways of managing.


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Exhibit 27 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 nonroutine technologies.

Environmental uncertainty

What works best in a stable and predictable environmentmay 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.


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Current Trends and Issues

Globalization

Ethics

Workforce Diversity

Entrepreneurship

E-business

Knowledge Management

Learning Organizations

Quality Management


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Current Trends and Issues (contd)

Globalization

Management in international organizations

Political and cultural challenges of operating in a

global market

Working with people from different cultures

Coping with anticapitalist backlash

Movement of jobs to countries with low-cost labor

Ethics

Increased emphasis on ethics education in college

curriculums

Increased creation and use of codes of ethics by

businesses


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Workforce Diversity

Increasing heterogeneity in the workforce

More gender, minority, ethnic, and other forms of diversity in

employees

Aging workforce

Older employees who work longer and do not retire

The increased costs of public and private benefits for older

workers

An increasing demand for products and services related to

aging.


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Entrepreneurship Defined

The process of starting new businesses, generally in

response to opportunities.

Entrepreneurship process

Pursuit of opportunities

Innovation in products, services, or business methods

Desire for continual growth of the organization


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E-Business (Electronic Business)

The work preformed by an organization using

electronic linkages to its key constituencies

E-commerce: the sales and marketing aspect of an e-

business


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Learning Organization

An organization that has developed the capacity to

continuously learn, adapt, and change.

Knowledge Management

The cultivation of a learning culture whereorganizational members systematically gather and

share knowledge with others in order to achieve

better performance.


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Quality Management

A philosophy of management driven by continual

improvement in the quality of work processes and

responding to customer needs and expectations

Inspired by the total quality management (TQM) ideas

of Deming and Juran

Quality is not directly related to cost

Poor quality results in lower productivity


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What is Management?

A set of activitiesplanning and decision making, organizing, leading, and

controlling

directed at an organizations resources

human, financial, physical, and information

with the aim of achieving organizational goals

in an efficient and effective

manner.


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The Management Process

Organizing

Determining howbest to groupactivities and

resources

Controlling

Monitoringand correcting

ongoing activitiesto facilitate goal

attainment

Planning andDecision Making

Setting the organiza-tions goals and

deciding how bestto achieve them

Leading

Motivating membersof the organizationto work in the best

interests of theorganization


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The Management Process (contd)

Planning and Decision Making

Setting an organizations goals and selecting a course

of action from a set of alternatives to achieve them.

Organizing

Determining how activities and resources aregrouped.

Leading

The set of processes used to get organizational

members to work together to advance the interests ofthe organization.

Controlling

Monitoring organizational progress towards goals.


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Terms to Know

Division of labor (or job

specialization) Industrial Revolution

scientific management

general administrative theory

principles of management

bureaucracy

quantitative approach

organizational behavior (OB)

Hawthorne Studies

system

closed systems

open systems contingency approach

workforce diversity

entrepreneurship

e-business (electronicbusiness)

e-commerce (electronic

commerce)

intranet

learning organization

knowledge management

quality management


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Else is what?

This presentation will be uploaded by 9

pm tonight on

www.kanwalgurleen.blogspot.com

Evolution of Mgt

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