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Historical Background of
Management
Major Approaches To Management
Classical Approaches
Scientific
General
Administrative
Emphasis on ways to manage
work more efficiently
Emphasized scientific study of work
methods to improve productivity of
individual workers
Proponents: Frederick W. Taylor
Frank & Lillian Gilbreth
Concerned with managing the
entire organization
Proponents: Henry Taylor
Max Weber
Relies on scientific research for
developments theory to provide
practical manager tools
Emphasis on importance of
understanding human behavior &
motivating & encouraging
employees toward achievement
Proponents: Hugo Munsterberg,
Elton Mayo
Proposed better human relations
could increase worker productivity
Proponents: Abraham Maslow
Douglas McGregor
Applies quantitative
techniques to management
Focuses on managing the
production and delivery of an
organization’s products or
services more effectively
Focuses on using
mathematics to aid in
problem solving and
decision making
5
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
Scientific Management
• 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
Scientific Management
• 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
8
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
•
9
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
Scientific Management
The ideas of scientific Management
dramatically increased productivity
across all industries ,and they are still
important today.
Administrative Management
Administrative
Management:
concerned with managing
the total organization
Among the pioneering theorists were
Henry Fayol & Max Weber
11
Henry Fayol and the Functions
of Management
Planning
You set goals and
decide how to
achieve them
Organizing
You arrange tasks,
people, & other
resources to accomplish
the work
Leading
You motivate, direct &
otherwise influence people
to work hard to achieve the
organization’s goals
Controlling
You monitor performance,
compare it with goals and
take corrective action as
needed
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
12
13
Fayal's 14 Principles of Management
1. Division of labor-Divide work into specialized
tasks and assign responsibilities to specific
individuals.
2. Authority -Delegate authority along with
responsibility
3. Discipline Make expectations clear and punish
violators
Fayal's 14 Principles of Management
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.
Fayal's 14 Principles of Management
• 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.
Fayal's 14 Principles of Management
• 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.
Fayal's 14 Principles of Management
• Esprit de corps-Promote a unity of interest
between employees and management
18
• T
:o 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.
21
Classical bureaucracy
Max 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
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
22
Behavioral Management Theory
Thhe
Human
Relations
Management
Human
Resource
Perspective
Behavioral
Science
Approach
Human Relations Management
Hawthorne 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 .’
24
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
Illumination
Studies
The Relay Assembly
Room Study
The Bank
Wiring Room
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.
Panel 2.2: The contemporary perspective:
Three Viewpoints
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
The Quality Management
Viewpoints
Three approaches
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‖
Total Quality Management
Comprehensive approach
dedicated to continuous quality
improvement, training, and
customer satisfaction
Proponents: W. Edward Deming
Joseph M. Juran
36
37
Systems Approach (60-70s)
A system is set of interrelated and
interdependent parts arranged in a manner
that produces a unified whole
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
38
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
1. A collection of subsystems—
parts making up the whole
system
2. A part of the larger environment
39
The Four Parts of a System
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
Outputs
The products, services,
profits, losses, employee
satisfaction or
discontent, and the like
that are produced by the
organization
Feedback
Information about the
reaction of the
environment to the
outputs that affect the
inpu40ts
41
Contingency approach
The contingency approach
sometimes called the
situational approach says that
organizations are different ,face
different situations ,and require
different ways of managing.
42
Contingency approach
• 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.
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
43
Contingency approach
• 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
The Contemporary Perspective:
The Quality Management Viewpoint
The Quality
Management
Viewpoint includes
quality control, quality
assurance, and total
quality management
47
Total Quality Management:
Creating an Organization
Dedicated to Continuous Improvement
48
• 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:
1. Make Continuous Improvement a Priority
2. Get Every Employee Involved
3. Listen to and Learn from Customers and
Employees
4. Use Accurate Standards to Identify and
Eliminate Problems

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approachesofmanagement-110909075825-phpapp01.pptx

  • 2. Major Approaches To Management
  • 4. Emphasis on ways to manage work more efficiently Emphasized scientific study of work methods to improve productivity of individual workers Proponents: Frederick W. Taylor Frank & Lillian Gilbreth Concerned with managing the entire organization Proponents: Henry Taylor Max Weber Relies on scientific research for developments theory to provide practical manager tools Emphasis on importance of understanding human behavior & motivating & encouraging employees toward achievement Proponents: Hugo Munsterberg, Elton Mayo Proposed better human relations could increase worker productivity Proponents: Abraham Maslow Douglas McGregor Applies quantitative techniques to management Focuses on managing the production and delivery of an organization’s products or services more effectively Focuses on using mathematics to aid in problem solving and decision making
  • 5. 5 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
  • 6. Scientific Management • 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
  • 7. Scientific Management • 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
  • 8. 8 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 •
  • 9. 9 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
  • 10. Scientific Management The ideas of scientific Management dramatically increased productivity across all industries ,and they are still important today.
  • 11. Administrative Management Administrative Management: concerned with managing the total organization Among the pioneering theorists were Henry Fayol & Max Weber 11
  • 12. Henry Fayol and the Functions of Management Planning You set goals and decide how to achieve them Organizing You arrange tasks, people, & other resources to accomplish the work Leading You motivate, direct & otherwise influence people to work hard to achieve the organization’s goals Controlling You monitor performance, compare it with goals and take corrective action as needed 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 12
  • 13. 13 Fayal's 14 Principles of Management 1. Division of labor-Divide work into specialized tasks and assign responsibilities to specific individuals. 2. Authority -Delegate authority along with responsibility 3. Discipline Make expectations clear and punish violators
  • 14. Fayal's 14 Principles of Management 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.
  • 15. Fayal's 14 Principles of Management • 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.
  • 16. Fayal's 14 Principles of Management • 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.
  • 17. Fayal's 14 Principles of Management • Esprit de corps-Promote a unity of interest between employees and management
  • 18. 18 • T :o 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
  • 19. • 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
  • 20. • Rules and regulations determine and standardize behavior • Administrative acts and decisions are recorded in writing • Management is separate from ownership in any organization.
  • 21. 21 Classical bureaucracy Max 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
  • 22. 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 22
  • 24. Human Relations Management Hawthorne 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 .’ 24
  • 25. 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
  • 26. Hawthorne studies The Hawthorne project involved three sets of studies Illumination Studies The Relay Assembly Room Study The Bank Wiring Room
  • 27. 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
  • 28. 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
  • 29. 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.
  • 30. 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 .
  • 31. 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.
  • 32. 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
  • 33. Maslow Hierarchy Of Needs • Self-Actualization • Esteem Needs • Social Needs • Safety Needs • Physiological Needs
  • 34. 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.
  • 35. 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.
  • 36. Panel 2.2: The contemporary perspective: Three Viewpoints 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 The Quality Management Viewpoints Three approaches 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‖ Total Quality Management Comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction Proponents: W. Edward Deming Joseph M. Juran 36
  • 37. 37 Systems Approach (60-70s) A system is set of interrelated and interdependent parts arranged in a manner that produces a unified whole
  • 38. 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 38
  • 39. 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 1. A collection of subsystems— parts making up the whole system 2. A part of the larger environment 39
  • 40. The Four Parts of a System 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 Outputs The products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization Feedback Information about the reaction of the environment to the outputs that affect the inpu40ts
  • 41. 41 Contingency approach The contingency approach sometimes called the situational approach says that organizations are different ,face different situations ,and require different ways of managing.
  • 42. 42 Contingency approach • 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.
  • 43. 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 43
  • 44. Contingency approach • The Primary value of the contingency approach is that it stresses that there are no simplistic or universal rules for managers to follow
  • 45. 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
  • 46. 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
  • 47. The Contemporary Perspective: The Quality Management Viewpoint The Quality Management Viewpoint includes quality control, quality assurance, and total quality management 47
  • 48. Total Quality Management: Creating an Organization Dedicated to Continuous Improvement 48
  • 49. • 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
  • 50. Four Components of TQM: 1. Make Continuous Improvement a Priority 2. Get Every Employee Involved 3. Listen to and Learn from Customers and Employees 4. Use Accurate Standards to Identify and Eliminate Problems