Principal of management

1. 1

3. Outline
• Historical Background
• Management perspectives in historical order
 The classical management perspective
The behavioral management perspective
The quantitative management perspective
Contemporary management perspective

4. Historical Background
Management in ancient times
• Egyptians constructed pyramids
• Chinese built the Great Wall
• Great philosophers in Ancient Greek ( Socrates, Plato,
Aristotal, Alexander the great)

5. Management Perspective in Their
Historical Order
The Classical Management Perspective
The Behavioral Management Perspective
The Quantitative Management Perspective
Contemporary Management Perspective

6. Classical Management Perspective
Classical Management
Perspective
Scientific
Management
Theory
Administrative
management
Theory

7. Scientific Management
• Productivity emerged as a serious business problem during
the first few years of the 20th century.
• Business was expanding and capital was readily available, but
labor was in short supply. Hence need for labor efficiency
arose.
• Advocates
 Fredric W. Taylor (1856 – 1915)
 Frank and Lillian Gilbreth
Henry Garntt (1861 – 1919)

8. Fredric W. Taylor
• The father of scientific management
• Use scientific methods to define
“One Best Way” for a job to be done
• Introduced piecework pay system
(from the study carried out at Midvale Steel)
• Later found that job redesigning, introducing, rest periods to
reduce fatigue and implementing piece work pay system
could increase quality and quantity of output

9. Principles of Scientific Management
Tie work performance with economic rewards
Supervise employees to ensure that they follow prescribed
methods
Scientifically select employees and train them to do according
to the prescribed methods
Develop a “science” for each element of the job to replace old
rule-of-thumb

10. Frank & Lillian Gilbreth
• Focused on increased worker productivity through the
reduction of wasted motion

11. Henry Gantt
• Introduced Gantt Chart which
is widely used in project management
even today
• It enables scheduling work and can be
generated for each worker or for a complex project as a
whole

12. Gantt Chart

13. Administrative Management
• Whereas scientific management deals with jobs of individual
employees administrative management focuses on managing
the total organization
• Main contributors
 Henry Fayol (1841 - 1925)
 Max Weber (1864 – 1920)

14. Henry Fayol
• 14 Principles of management
1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of
individual interests to
the general interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of
personnel
13. Initiative
14. Esprit the corps

15. Max Weber
• Core of Weber’s writings was the
bureaucratic model of the organizations
• Bureaucracy is a model of an organization
designed based on legitimate and formal system of authority
• He viewed bureaucratic form of organization as logical,
rational and efficient

16. Max Weber Cont.

17. Limitations of Classical Management
Perspective
• More appropriate for stable and simple organizations than for
today’s dynamic and complex organizations
• Often prescribed universal procedures that are not
appropriate in certain settings
• Eventhough some advocates were concerned with human
element many viewed employees as tools rather than
resources

18. Behavioral Management Perspective
• Placed much more emphasis on individual attitudes and
behavior on group processes and recognize the importance of
behavioral processes in the workplace
• Advocates
Hugo Munsterberg (1863 – 1916)
Elton Mayo
Abraham Maslow (1908 – 1970)
Douglas McGregor (1906 – 1964)

19. Hugo Munsterberg
• A noted German psychologist
and is recognized as the father of
industrial psycology
• Suggested that psychological tests could make valuable
contribution to manager in the areas of employee selection
and motivation

20. Elton Mayo
• One of his famous studies
was known as “Hawthorne Studies”
• The study was conducted near Chicago at Western Electrics
Hawthorne Plant and research was originally sponsored by
General Electrics

21. Hawthorne Studies
• The first study involved manipulating illumination
• After through examination of results, Elton Mayo determined
that workers weren’t responding to the change in lighting
conditions but instead were reacting to the fact that they
were being observed

22. Abraham Maslow
• Argued that people are motivated to
satisfy 5 levels of needs
• One must satisfy lower level basic needs
before progressing on to meet higher level growth needs.
Once these needs have been reasonably satisfied, one may be
able to reach the highest level called self-actualization.

23. Maslow’s Hierarchy of Needs
Status
Shelter
Love,
Affection
Food
Achievement
Salary
Pension plans,
Job security
Friends at
work
Job title
Challenging
job
General Examples Organizational Examples

24. Douglas McGregor
• Developed Theory X and Theory Y
• He argued that Theory X best represented the views of
scientific management and Theory Y represented the human
relations approach
• McGregor believed that Theory Y was the best philosophy for
all managers

25. Theory X and Theory Y
• Theory X assumptions
People do not like work and try to avoid
Managers have to control, direct, coerce and threaten
employees to get them to work
People prefer to be directed, to avoid responsibility and to
want security

26. • Theory Y assumptions
People do not naturally dislike work
People are internally motivated to reach objectives to which
they are committed
People are committed to goals to the extent that they receive
personal rewards when they reach objectives
People will both seek and accept responsibility under
favorable conditions
People have the capacity to be innovative in solving
organizational problems
Theory X and Theory Y

27. Quantitative Management
Perspective
Quantitative
Management
Perspective
Management
Science
Operations
Management
Focuses specially on the
development of mathematical
models
Concerned with helping the
organization more efficiently
produce its products or services

28. Contemporary Management
Perspective
Contemporary
Management Perspective
Systems
Perspective
Contingency
Perspective

29. Systems Perspective
Input Transformation
Process
Output
Feedback

30. • System is an interrelated set of elements functioning as a
whole
• Open system
System that interacts with its environment
• Closed System
A system that does not interact with its environment
• Synergy
Organizational units may often be more successful working
together than working alone
Systems Perspective Cont.

31. Contingency Perspective
• The Classical, behavioral, quantitative approaches are
considered universal perspectives because they tried to
identify the “one best way” to manage organizations
• The contingency perspective in contrast, suggests that
universal theories cannot be applied to organizations, because
each organization is unique
• This suggests that appropriate managerial behavior in a given
situation depends on or in contingent on, unique elements in
that situation