Principles of Management Session. 2 Management Yesterday & Today USMAN SADIQ (Ph.D. Scholar)
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Transcript of Principles of Management Session. 2 Management Yesterday & Today USMAN SADIQ (Ph.D. Scholar)
AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:
Historical Background Of Management.
Classical Approach.
Quantitative Approach.
Behavioral Approach.
Contingency/Contemporary Approach
OrganizationBehaviorOrganization
Behavior
Scientific ManagementScientific
Management
General AdministrationGeneral
Administration
SystemApproachSystem
Approach
ContingencyApproachContingency
Approach
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
General Administrative Theory
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Classical Approach
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.
Quantitative Approach
Also called operations research or management
scienceEvolved from mathematical
and statistical methods developed to solve WWII
military logistics and quality control problems
Focuses on improving managerial decision making
by applying:Statistics, optimization
models, information models, and computer simulations
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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
o Intense focus on the customer.
o Concern for continual improvement
o Process-focused.
o Improvement in the quality of everything.
o Accurate measurement.
o Empowerment 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
Hawthorne studies
A series of studies during the 1920s and 1930s that provided new
insights into individual and group behavior
• Experimental findings Productivity unexpectedly increased under imposed
adverse working conditions. The effect of incentive plans was less than expected.
• Research conclusion Social norms, group standards and attitudes more
strongly influence individual output and work behavior than do monetary incentives.
A series of productivity experiments conducted at Western Electric from 1927 to
1932.
A set of interrelated and interdependent parts arranged in a manner that
produces a unified whole.
System Approach
Basic Types of Systems
Closed systems
Are not influenced by and do not interact with their environment (all
system input and output is internal).
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.