Principles of Management
AFTER STUDYING CHAPTER Two AND LISTENING TO MY
LECTUER, YOU SHOULD BE ABLE TO:
Historical Background Of Management.
Major Approaches Of Management
China (Great Wall)
Published “The Wealth of Nations” in 1776
Advocated the division of labor (job specialization) to increase
the productivity of workers
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.
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
» 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
Use time and motion studies to increase productivity
Hire the best qualified employees
Design incentive systems based on output
Frank and Lillian Gilbreth
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
Fayal's 14 principles of Management
Developed fourteen principles of management that applied to
all organizational situations.
1. Division of labor.
4. Unity of command.
5. Unity of direction.
6. Subordination of individual interests to the general interests.
9. Scalar chain.
14. Esprit de corps.
Developed a theory of authority structures and
relation in 1900s,called bureaucracy.
A form of organization characterized by division of
labor ,a clear defined hierarchy, detailed rules
and regulations, and impersonal relationships.
A philosophy of management driven by continual
improvement in the quality of work processes and
responding to customer needs and expectations
oIntense focus on the customer.
oConcern for continual improvement
oImprovement in the quality of everything.
oEmpowerment of employees.
What is Quality Management?
The study of the actions of people at
work; people are the most important
asset of an organization
A series of studies during the 1920s and 1930s that
provided new insights into individual and group
• Experimental findingsExperimental findings
Productivity unexpectedly increased under imposed adverseProductivity unexpectedly increased under imposed adverse
working conditions.working conditions.
The effect of incentive plans was less than expected.The effect of incentive plans was less than expected.
• Research conclusionResearch conclusion
Social norms, group standards and attitudes more stronglySocial norms, group standards and attitudes more strongly
influence individual output and work behavior than doinfluence individual output and work behavior than do
monetary incentives.monetary incentives.
A series of productivity experiments conducted atA series of productivity experiments conducted at
Western Electric from 1927 to 1932.Western Electric from 1927 to 1932.
The field of study concerned with the actions
(behavior) of people at work.
A set of interrelated and interdependent parts arranged
in a manner that produces a unified whole.
A management approach which says that organization
are different, face different situations (contingencies),
and require different ways of managing
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
• Individual differences
• Individuals differ in terms of their desire for growth, autonomy,
tolerance of ambiguity, and expectations.