Approaches of management

Historical Background of Management

Major Approaches To Management

Classical Approaches

Panel 2.1: The Historical Perspective
Behavioral Viewpoint
Emphasis on importance of understanding human behavior & motivating & encouraging employees toward achievement
Early Behaviorists
Proponents: Hugo Munsterberg, Elton Mayo
Classical Viewpoint
Emphasis on ways to manage work more efficiently
Administrative Management
Concerned with managing the entire organization
Proponents: Henry Taylor Max Weber
Quantitative Viewpoint
Applies quantitative techniques to management
Management Science
Focuses on using mathematics to aid in problem solving and decision making
Scientific Management
Emphasized scientific study of work methods to improve productivity of individual workers
Proponents: Frederick W. Taylor Frank & Lillian Gilbreth
Human Relations Movement
Proposed better human relations could increase worker productivity Proponents: Abraham Maslow
Douglas McGregor
Operations Management
Focuses on managing the production and delivery of an organization’s products or services more effectively
Behavioral science approach
Relies on scientific research for developments theory to provide practical manager tools

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Scientific Management: emphasized the scientific study of work methods to improve the productivity of individual workers
Two of its chief proponents were Frederick W. Taylor,& Frank and Lillian Gilbreth

Credit for Scientific Management goes to Frederick Taylor who was hired by Midvale Steel company in the US in 1878.
Taylor discovered that production and pay were poor ,inefficiency and waste were prevalent ,and most companies had unused potential .
He concluded that management decisions were unsystematic and no efforts were made to determine the best means of production

The Taylor introduced Scientific Management (he is called the Father of Scientific Management ) which recommended the application of scientific methods to analyze work and to determine the methods to complete the tasks efficiently

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Principles of Scientific Management
Workers are essentially economic beings
Workers should be developed to their maximum potential
Competitive pay system
Cooperation between managers and workers
Organizational and individual goals should be compatible

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Scientific management
Study jobs systematically with a view to improving
the way tasks are performed
Select the best employees for the various jobs.
Train the employees in the most efficient methods
Offer incentives (higher wages) to the most able
employees and use piece-rate system of payment to
encourage greater effort.
Use rest pauses to combat fatigue
Entrust to supervisor the task of ensuring that
employees are using the prescribed methods

The ideas of scientific Management dramatically increased productivity across all industries ,and they are still important today.

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Administrative Management
Administrative Management: concerned with managing the total organization
Among the pioneering theorists were Henry Fayol & Max Weber

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Planning
You set goals and decide how to achieve them
Organizing
You arrange tasks, people, & other resources to accomplish the work
Controlling
You monitor performance, compare it with goals and take corrective action as needed
Leading
You motivate, direct & otherwise influence people to work hard to achieve the organization’s goals
Henry Fayol and the Functions of Management
Henry Fayol was the first to systematize management management behavior– he was the first to identify the major functions of management: planning, organizing, leading, controlling, as well as coordinating

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Fayal's 14 Principles of Management
Division of labor-Divide work into specialized tasks and assign responsibilities to specific individuals.
Authority -Delegate authority along with responsibility
Discipline Make expectations clear and punish violators

4-Unity of commandEach employee has one and only one boss
5-Unity of Direction- Employees efforts should be focused on achieving organization’s direction.
6-Subordination of Individual interest to the general interest When at work, only work things should be pursued or thought about.

RemunerationEmployees receive fair payment for services,
Centralization- Decisions are made from the top.
Scalar Chain(line of authority). Formal chain of command running from top to bottom of the organization, like military
Order-All materials and personnel have a prescribed place, and they must remain there.

Equity-Equality of treatment
Stability and tenure of personnel-Promote employee loyalty and longevity
Initiative-Thinking out a plan and do what it takes to make it happen.

Esprit de corps-Promote a unity of interest between employees and management

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Max Weber & the Rationality of Bureaucracy
:
To Weber, a bureaucracy(Successful implement the actions of an organization of any size in achieving its purpose.) was a rational, efficient ideal organization based on principles of logic—he felt good organizations should have five bureaucratic features

Labor is divided with clear definitions of authority and responsibility.
Positions are organized in a hierarchy of authority ,with each position under the authority of a higher one

Rules and regulations determine and standardize behavior
Administrative acts and decisions are recorded in writing
Management is separate from ownership in any organization.

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Classical bureaucracyMax Weber, 1947
Hierarchy of authority
Rights and duties are attached to the various positions
Division of labour
Rules and procedures
Documentation in which info is recorded in written form
Technical competence
Separation of ownership from control

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The Problem with the Classical Viewpoint
The classical viewpoint tends to be too mechanistic: it tends to view humans as cogs within a machine, not taking into account the importance of human needs

Behavioral Management Theory

Human Relations ManagementHawthorne Studies
Hawthorne studies was conducted at the western Electric Company in the US between 1924-1932
Elton Mayo was a professor of Industrial Research at the Harvard School of Business Administration
He is called the ‘Father of human relations movement .’
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Elton Mayo & the Supposed Hawthorne Effect
Elton Mayo and his colleagues conducted studies at Western Electric’s Hawthorne Plant and began with an investigation to see if different lighting affected workers’ productivity

Hawthorne studies
The Hawthorne project involved three sets of studies
The Relay Assembly Room Study
The Bank Wiring Room
Illumination Studies

Illumination Studies
Illumination studies constituted the first set of experiments and took place between 1924 and 1927
Experiment -Lighting was decreased
Result-The researches concluded that factors other than lighting were at work

Experiment
The first study was conducted by a group of engineers seeking to determine the relationship of lighting levels to worker productivity. Surprisingly enough, they discovered that worker productivity increased as the lighting levels decreased

The Relay Assembly Room study
A few years later, a second group of experiments began. Harvard researchers Mayo and F. J. Roethlisberger supervised a group of five women in a bank wiring room. They gave the women special privileges, such as the right to leave their workstations without permission, take rest periods, enjoy free lunches, and have variations in pay levels and workdays. This experiment also resulted in significantly increased rates of productivity.

The Bank Wiring Room Study
For this study a group of 14men who wired telephone banks was observed in a standard shop condition
An observer was stationed in the room with instructions to take continuous note’s on the workers actions .
The observer were not allowed to give orders or to get involved in conversations with the workers .

The Bank wiring Room Study
The researches concluded that the behavioral norms set by the work group had a powerful influence over the productivity of the group.
The power of the peer group and the importance of group influence on individual behavior and productivity were confirmed in the bank wiring room.

Human Resource Approach
The Human relations approach highlighted the impact of behavior on performance .Interpersonal behavior has its impact on satisfaction which in turn may lead to improved performance .
Abraham Maslow and Douglas Ac Greg or .Their contribution form the human resource approach

Maslow Hierarchy Of Needs
Self-Actualization
Esteem Needs
Social Needs
Safety Needs
Physiological Needs

Behavioral Science Approach
Psychologist ,sociologists and others began studying people at work .The behavioral science approach believes that an individual is motivated to work for many reasons in addition to making money and forming interpersonal relationships.

Behavioral Science Approach
The principals of behavioral science approach are being practiced in every organization and behavioral science as a course more popularly known as Organization Behavior.

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Panel 2.2: The contemporary perspective: Three Viewpoints
The Quality Management Viewpoints
Three approaches
The System Viewpoint
Regards the organization as a system of interrelated parts that operate together to achieve a common purpose
The Contingency Viewpoint
Emphasizes that a manager’s approach should vary according to—I.e. be contingent on—the individual and environmental situation
Total Quality Management
Comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction
Proponents: W. Edward Deming
Joseph M. Juran
Quality Control
Strategy for minimizing errors by managing each state of production
Proponent: Walter Stewart
Quality Assurance
Focuses on the performance of workers urging employees to strive for “zero defects”

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Systems Approach (60-70s)
A system is set of interrelated and interdependent parts arranged in a manner that produces a unified whole

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Open and Closed Systems
Open System continually interacts with its environment
Closed System has little interaction with its environment; it receives very little feedback from the outside

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The Systems Viewpoint
The Systems Viewpoint regards the organization as a system of interrelated parts
By adopting this perspective you can look at your organization in two ways
A collection of subsystems—parts making up the whole system
A part of the larger environment

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The Four Parts of a System
Outputs
The products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization
Inputs
The people, money, information, equipment, and materials required to produce and organization’s goods or services
Transformational Processes
The organization’s capabilities in management and technology that are applied to converting inputs to outputs
Feedback
Information about the reaction of the environment to the outputs that affect the inputs

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Contingency approach
The contingency approach sometimes called the situational approach says that organizations are different ,face different situations ,and require different ways of managing.

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A good way to describe contingency
If this is the way my situation is then this is the best way for me to manage in this situation
This approach is intuitively logical because organizations and even units within the same organization differ-in terms of size ,goals , work activities.

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The Contemporary Perspective: The Contingency Viewpoint
The Contingency Viewpoint emphasizes that a manager’s approach should vary according to—that is, be contingent on—the individual and the environmental situation

The Primary value of the contingency approach is that it stresses that there are no simplistic or universal rules for managers to follow

Quantitative Approach
The Quantitative approach evolved from mathematical and statistical solutions developed for military problems during word war II.
After the war was over , many of these techniques used for military problems were applied to business

Quantitative Approach
One group of military officers ,nicknamed the whiz kids joined Ford Motor Company in the mid -1940s and immediately began using statistical methods and Quantitative models to improve decision making

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The Contemporary Perspective: The Quality Management Viewpoint
The Quality Management Viewpoint includes quality control, quality assurance, and total quality management

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Total Quality Management: Creating an Organization Dedicated to Continuous Improvement

Total Quality Management is a comprehensive approach—led by top managers and supported throughout the organization—dedicated to continuous quality improvement, training and customer satisfaction

Four Components of TQM:
Make Continuous Improvement a Priority
Get Every Employee Involved
Listen to and Learn from Customers and Employees
Use Accurate Standards to Identify and Eliminate Problems

Approaches of management

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Approaches of management Presentation Transcript