This provides an overview of management approaches. Much of this work relied heavily on Bhavin Aswani's Evolution of Management Thought, Management 2's, The Evolution of Management Study and Management Yesterday and Today. Many other sources were also used in the slides.
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2. MANAGEMENT
encompasses an array of different functions undertaken to accomplish a task
successfully
process of designing and maintaining an environment in which individuals,
working to gather in groups, efficiently accomplish selected aims
has many approaches --varying from a problem to problem solving style to
the change
each approach has its own limitations and advantages.
about „getting things done‟
3. MANAGEMENT
“Management is the art of knowing what
you want to do and then seeing that it is
done in the best and cheapest way.”
- F .W. Taylor
“Management is a multipurpose
organ that manage a business
and manages Managers and
manages Workers and work.”
-Peter Drucker
4. The Value of Studying
MANAGEMENT
The universality of management
Good management is needed in all organizations.
The reality of work
Employees either manage or are managed.
Rewards and challenges of being a manager
Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
Successful managers receive significant monetary
rewards for their efforts.
6. Efficiency and Effectiveness in
Management
Managerial Concerns
Efficiency
“Doing things right”
Getting the most output for the least inputs
Effectiveness
“Doing the right things”
Attaining organizational goals
8. ENVIRONMENT FACTORS
SOCIAL
INFLUENCE
• The aspects of culture that influence norms
and values
ECONOMIC
INFLUENCE
• The concept to availability, production, and
distribution of resources within a society
POLITICAL
INFLUENCE
• The impact of political institutions on
individuals and organisations
10. DIFFERENT APPROACHES
• SCIENTIFIC
• ADMINISTRATIVE
• BUREAUCRATIC
CLASSICAL
• GROUP INFLUENCES
• MASLOW’S NEED THEORY
• THEORY X AND THEORY Y
• HAWTHORNE STUDIES
BEHAVIORAL
• THEORY Z
• TOTAL QUALITY MANAGEMENT
• MANAGEMENT BY OBJECTIVES
• SITUATIONAL LEADERSHIP
MODERN
11.
12. Focuses on the
individual worker‟s
productivity
Focuses on the
functions of
management
Focuses on the
overall
organizational
system
CLASSICAL APPROACH
15. I. SCIENTIFIC MANAGEMENT
Father of SM: Frederick Taylor
• develop a scientific approach for each element of one‟s work
• scientifically select, train, teach and develop each worker
• cooperate with workers to ensure that jobs match plans and
principles
• ensure appropriate division of labor
FOUR
PRINCIPLES
• Task Performance
• Supervision
• Motivation
THREE AREAS OF
FOCUS
• Piece-rate-incentive system
• Time and motion study
TWO MANAGERIAL
PRACTICES
16. I. SCIENTIFIC MANAGEMENT
Father of SM: Frederick Taylor CONT‟D
• SM became nationally known, but the selective
implementation of the principles created more harm than
good.
• Workers felt that as their performance
increased, managers required them to do
more work for the same pay.
• Increases in performance meant fewer jobs
and greater threat of layoffs
• Monotonous and repetitive
• Dissatisfaction
17. I. SCIENTIFIC MANAGEMENT cont’d
Henry Gantt and The Gilberths
HENRY
GANTT
• Most famous for developing the Gantt chart in the 1910s.
• Implemented a wage incentive program
FRANK
GILBERTH
• Specialized in time and motion studies to determine the most
efficient way to perform tasks.
• Used motion pictures of bricklayers to identified work elements
(therbligs) such as lifting and grasping
LILLIAN
GILBERTH
• A strong proponent of better working conditions as a means of
improving efficiency and productivity.
20. II. BUREAUCRATIC MGMT.
Focuses on the overall organizational system.
Need for organizations to function on a rational
basis
Bureaucratic management is based upon:
• Firm rules
• Policies and procedures
• A fixed hierarchy
• A clear division of labor
21. II. BUREAUCRATIC MGMT. cont’d
Father of BM Theory: Max Weber
• A German sociologist and historian who
envisioned a system of management
• “a bureaucracy is a highly structured,
formalized and impersonal organization.”
MAX WEBER
• Division of labor
• Hierarchy of authority
• Rules and procedures
• Impersonality
• Employee selection and promotion
FIVE
PRINCIPLES
30. III. ADMINISTRATIVE MGMT.
Focused on principles
that could be used by
managers to
coordinate the internal
activities of
organizations
Five management
functions
• planning
• organizing
• commanding
• coordinating
• controlling
31. III. ADMINISTRATIVE MANAGEMENT cont’d
HENRI FAYOL’s PRINCIPLES of MANAGEMENT
1. Division of labor
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. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de corps
48. BEHAVIORAL APPROACH
The study of how managers
should behave to motivate
employees and encourage
them to perform at high
levels and be committed to
the achievement of
organizational goals.
49. BEHAVIORAL APPROACH
The behavioral school of
management emphasized what
the classical theorists ignored.
Acknowledged the importance of
human behavior in shaping
management style.
Personalities
• Mary Parker Follett
• Douglas McGregor
• Chester Barnard
• Elton Mayo
52. Mary Parker Follett
ON EFFECTIVE WORK GROUPS
FOUR PRINCIPLES OF COORDINATION
• Coordination requires that people be in direct contact
with one another.
• Coordination is essential during the initial stages of
any endeavor.
• Coordination must address all factors and phases of
any endeavor.
• Coordination is a continuous, ongoing process.
BEHAVIORAL APPROACH cont’d
56. Douglas McGregor's Proposed Styles
THEORY X
• Most people dislike work
and they avoid it when
they can.
• Coerced and threatened
with punishment before
they work.
• Avoid responsibility and
have little ambition.
THEORY Y
• Work is a natural activity
like play or rest.
• Capable of self direction
and self control.
• Committed to
organizational
objectives.
BEHAVIORAL APPROACH cont’d
57. Elton Mayo’s View
Aimed to understand how psychological and social
processes interact with the work situation to influence
performance
Work represents the transition from scientific
management to the early human relations movement.
Emphasized on workers themselves and needs to
belong to a group
BEHAVIORAL APPROACH cont’d
58. “HAWTHORNE EFFECT”
• Workers perform and react differently when
researchers observe them.
• Productivity increased because attention was paid
to the workers in the experiment.
• Phenomenon whereby individual or group
performance is influenced by human behavior
factors
BEHAVIORAL APPROACH cont’d
Elton Mayo’s Hawthorne Study (1924-1932)
59. “HAWTHORNE EFFECT”
• The finding that a manager’s behavior or
leadership approach can affect worker’s level of
performance.
BEHAVIORAL APPROACH cont’d
Elton Mayo’s Hawthorne Study (1924-1932)
62. William Ouchi‟s Theory Z
assumes employees have an
interest in good working
relationships with management
and other employees
MODERN APPROACH
63. William Ouchi‟s Theory Z
Management generally has high
confidence in employees, who are
encouraged to participate in the
management decision making.
MODERN APPROACH cont’d
64. William Ouchi‟s Theory Z
Employees are viewed as long-term
assets who will stay with the same
firm throughout their careers.
MODERN APPROACH cont’d
67. William Ouchi‟s Theory Z
THEORY Z
Long-term Employment
Consensual Decision
Making
Individual Responsibility
Slow Evaluation &
Promotion
Informal Control With
Formalized Measures
Moderately Specialized
Career Path
Holistic Concern
MODERN APPROACH cont’d
68.
69. Total Quality Management
comprehensive approach for improving
product quality and get customer satisfaction
management philosophy of improving
product quality through everyone’s
commitment & involvement to satisfy
consumer needs
MODERN APPROACH cont’d
70. Total Quality Management
Walter A. Shewhart (1920s & 1930s)
Grandfather of quality control
Contributed to understand the process of variability
Developed concept of statistical control charts
MODERN APPROACH cont’d
71. Total Quality Management
W. Edwards Deming (1940s & 1950s)
Father of quality control
Stressed management’s responsibility for quality
Developed “14 points” to guide companies in quality
improvement
MODERN APPROACH cont’d
72. Total Quality Management
W. Edwards Deming (1940s & 1950s)
Japanese established “Deming Prize” in his name
15% of quality problems are actually due to worker error
85% of quality problems are caused by systems and
errors
MODERN APPROACH cont’d
73. Total Quality Management
Joseph M. Juran (1950s)
Defined quality as “fitness for use”
Developed concept of cost of quality
Originated idea of quality trilogy
Quality planning
Quality control
Quality improvement
MODERN APPROACH cont’d
74. Total Quality Management
Armand V. Feigenbaum (1960s)
Introduced the concept of
total quality control
MODERN APPROACH cont’d
75. Total Quality Management
Philip B. Crosby (1970s)
Coined phrase “quality is free”
Introduced concept of zero defects
Developed the phrase “Do it right the first time”
MODERN APPROACH cont’d
77. Total Quality Management
TQM uses continuous improvement, quality at
the source, employee empowerment, quality
tools, teams, benchmarking, and supplier
certification
MODERN APPROACH cont’d
78. Total Quality Management
Four dimensions: product/service design,
conformance, easy of use, post-sale support
MODERN APPROACH cont’d
80. Total Quality Management
It makes the company a
leader
Fastens the team work
Makes the company more
sensitive to customer
needs.
Makes the company adapt
more readily to changes.
Quality improves
Increased productivity
Staffs are more motivated
Cost reduced
MODERN APPROACH cont’d
81.
82. Management By Objectives (MBO)
MODERN APPROACH cont’d
also known as Management By Results (MBR), is a
process of defining objectives within an organization so
that management and employees agree to the
objectives and understand what they need to do in the
organization in order to achieve them
86. Management By Objectives (MBO)
MODERN APPROACH cont’d
Advantages
Develops result-oriented philosophy
Formulation of dearer goals
Facilitates objective appraisal
Raises employee morale
Facilitates effective planning
Acts as motivational force
Facilitates effective control
Facilitates personal leadership
87. Management By Objectives (MBO)
MODERN APPROACH cont’d
Limitations
Time-consuming
Reward-punishment approach
Increases paper work
Creates organizational problems
Develops conflicting objectives
Problem of coordination
Lacks durability
Problems related to goal-setting
Lack of appreciation
88. Management By Objectives (MBO)
MODERN APPROACH cont’d
Turning their aims into successful actions, forces
managers to master five basic operations:
1) setting objectives
2) organizing the group
3) motivating and communicating
4) measuring performance
5) developing people, including yourself
90. Key Reference
Evolution of Management Thought
by Bhavin Aswani, posted Nov. 26, 2012
http://www.slideshare.net/bhavinaswani/evolution-of-
management-thought-15357449?qid=61275941-4815-4988-87c1-
f57ba7fbfc1f&v=qf1&b=&from_search=4
91. Other References
The Evolution of Management Study Chapter 2
Posted by Management 2 on Apr. 11, 2009
http://www.slideshare.net/bsetm/chapter-2-the-evolution-of-
management-theory?qid=05f93aab-81b0-475e-954b-
c0aa2c6ceb2a&v=qf1&b=&from_search=1
Management Yesterday and Today
Posted by Management 2 on Apr. 11, 2009
http://www.slideshare.net/bsetm/chapter-2-the-evolution-of-
management-theory-written-in-different-manner?qid=606c7b90-
286a-4a98-95e2-613238e6f09c&v=qf1&b=&from_search=3