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Development of the management theories

This is analytic studies of modern management theories.

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Development of the management theories

  1. 1. Development of The Management Theories Sl. No Name Roll Batch 01 H M Saiful Islam 3252 49th 02 Md. Al Amin 3228 49th 03 Md. Enam Uddin 3231 49th 04 Rounak Rahma 3241 49th 05 Arafat Hossain 3250 49th Presented By: World University of Bangladesh 1WUB.SI.49
  2. 2. Presented To: A.B. M. Siddique Asst. Professor Department of Business Administration World University of Bangladesh 2WUB.SI.49
  3. 3. Learning Objectives (Continued)  You should be able to:  Discuss management’s relationship to other academic fields of study  Explain the value of studying management history  Identify some major pre-twentieth-century contributions to management  Summarize the contributions of the scientific management advocates  Describe the contributions of the general administrative theorists 3WUB.SI.49
  4. 4. Learning Objectives  You should be able to:  Summarize the quantitative approach to management  Describe the contributions of the early organizational behaviour advocates  Explain the importance of the Hawthorne Studies to management  Describe the effects of: globalization, workforce diversity, entrepreneurship, e-business, need for innovation and flexibility, quality management, learning organizations, and knowledge management 4WUB.SI.49
  5. 5. Management’s connection to other fields of study  Academic Disciplines that Affected Management  Anthropology - work on cultures and social environments  Economics - concern about the allocation and distribution of scarce resources  Philosophy - examines the nature of things  Political science - effect of political environment on individuals and groups  Psychology - seeks to measure, explain, and change human behavior  Sociology - studies people in relation to their fellow human beings 5WUB.SI.49
  6. 6. Development of major management theories Historical Background Scientific Management General Administrative Theorists Quantitative Approach Management Theories Industrial Revolution Adam Smith Early Advocates Hawthorne Studies Organizational Behaviour Early Examples of Management 6WUB.SI.49
  7. 7. The Time Line of Management Theory 7WUB.SI.49
  8. 8. Historical background of management  Organizations Have Existed for Thousands of Years  Significant Pre-Twentieth-Century Events  Adam Smith  division of labour - breakdown of jobs into narrow and repetitive tasks increased productivity  Industrial Revolution  substitution of machine power for human power  large organizations required formal management 8WUB.SI.49
  9. 9. Scientific Management Theory  Evolution of Modern Management  Began in the industrial revolution in the late 19th century as:  Managers of organizations began seeking ways to better satisfy customer needs.  Large-scale mechanized manufacturing began to supplanting small-scale craft production in the ways in which goods were produced.  Social problems developed in the large groups of workers employed under the factory system.  Managers began to focus on increasing the efficiency of the worker-task mix. 9WUB.SI.49
  10. 10. job specialization and the division of labor  Adam Smith (18th century economist)  Observed that firms manufactured pins in one of two different ways:  Craft-style—each worker did all steps.  Production—each worker specialized in one step.  Realized that job specialization resulted in much higher efficiency and productivity  Breaking down the total job allowed for the division of labor in which workers became very skilled at their specific tasks. 10WUB.SI.49
  11. 11. F.W. Taylor and Scientific Management  Scientific Management  The systematic study of the relationships between people and tasks for the purpose of redesigning the work process for higher efficiency.  Defined by Frederick Taylor in the late 1800’s to replace informal rule of thumb knowledge.  Taylor sought to reduce the time a worker spent on each task by optimizing the way the task was done. 11WUB.SI.49
  12. 12. Four Principles of Scientific Management  Principles to increase efficiency: 1. Study the ways jobs are performed now and determine new ways to do them.  Gather detailed time and motion information.  Try different methods to see which is best. 2. Codify the new methods into rules.  Teach to all workers the new method. 3. Select workers whose skills match the rules. 4. Establish fair levels of performance and pay a premium for higher performance.  Workers should benefit from higher output 12WUB.SI.49
  13. 13. Problems with Scientific Management  Managers frequently implemented only the increased output side of Taylor’s plan.  Workers did not share in the increased output.  Specialized jobs became very boring, dull.  Workers ended up distrusting the Scientific Management method.  Workers could purposely “under-perform.”  Management responded with increased use of machines and conveyors belts. 13WUB.SI.49
  14. 14. Frank and Lillian Gilbreth  Refined Taylor’s work and made many improvements to the methodologies of time and motion studies.  Time and motion studies  Breaking up each job action into its components.  Finding better ways to perform the action.  Reorganizing each job action to be more efficient.  Also studied worker-related fatigue problems caused by lighting, heating, and the design of tools and machines. 14WUB.SI.49
  15. 15. Administrative Management Theory  Administrative Management  The study of how to create an organizational structure that leads to high efficiency and effectiveness.  Max Weber  Developed the concept of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness. 15WUB.SI.49
  16. 16. Weber’s Principles of Bureaucracy 16WUB.SI.49
  17. 17. Weber’s Five Principles of Bureaucracy  Authority is the power to hold people accountable for their actions.  Positions in the firm should be held based on performance, not social contacts.  Position duties are clearly identified so that people know what is expected of them.  Lines of authority should be clearly identified such that workers know who reports to who.  Rules, standard operating procedures (SOPs), and norms guide the firm’s operations. 17WUB.SI.49
  18. 18. Fayol’s Principles of Management  Division of Labor: allows for job specialization.  Fayol noted jobs can have too much specialization leading to poor quality and worker dissatisfaction.  Authority and Responsibility  Fayol included both formal and informal authority resulting from special expertise.  Unity of Command  Employees should have only one boss. 18WUB.SI.49
  19. 19. Fayol’s Principles of Management (cont’d)  Line of Authority  A clear chain of command from top to bottom of the firm.  Centralization  The degree to which authority rests at the top of the organization.  Unity of Direction  A single plan of action to guide the organization. 19WUB.SI.49
  20. 20. Fayol’s Principles of Management (cont’d)  Equity  The provision of justice and the fair and impartial treatment of all employees.  Order  The arrangement of employees where they will be of the most value to the organization and to provide career opportunities.  Initiative  The fostering of creativity and innovation by encouraging employees to act on their own. 20WUB.SI.49
  21. 21. Fayol’s Principles of Management (cont’d)  Discipline  Obedient, applied, respectful employees are necessary for the organization to function.  Remuneration of Personnel  An equitable uniform payment system that motivates contributes to organizational success.  Stability of Tenure of Personnel  Long-term employment is important for the development of skills that improve the organization’s performance. 21WUB.SI.49
  22. 22. Fayol’s Principles of Management (cont’d)  Subordination of Individual Interest to the Common Interest  The interest of the organization takes precedence over that of the individual employee.  Esprit de corps  Comradeship, shared enthusiasm foster devotion to the common cause (organization). 22WUB.SI.49
  23. 23. Behavioral Management Theory  Behavioral Management  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.  Focuses on the way a manager should personally manage to motivate employees. 23WUB.SI.49
  24. 24. Behavioral Management  Mary Parker Follett  An influential leader in early managerial theory  Held a horizontal view of power and authority in organizations  Suggested workers help in analyzing their jobs for improvements—the worker knows the best way to improve the job.  If workers have relevant knowledge of the task, then they should control the task. 24WUB.SI.49
  27. 27. Quantitative approach to management  Operations Research (Management Science)  Use of quantitative techniques to improve decision making  applications of statistics  optimization models  computer simulations of management activities  Linear programming - improves resource allocation decisions  Critical-path scheduling analysis - improves work scheduling 27WUB.SI.49
  28. 28. Toward understanding organizational behavior  Organizational Behavior  Study of the actions of people at work  Hawthorne Studies  Started in 1924 at Western Electric Company  Elton Mayo - studies of job design  Changed the dominant view that employees were no different from any other machines 28WUB.SI.49
  29. 29. Early advocates of ob 29WUB.SI.49
  30. 30. Current trends and issues  Globalization  All organizations are faced with the opportunities and challenges of operating in a global market  Workforce Diversity  Heterogeneous workforce in terms of gender, race, ethnicity, age, and other characteristics that reflect differences  workforce is getting older  high degree of immigration in Canada 30WUB.SI.49
  31. 31. Current trends and issues (continued)  Entrepreneurship  Three important themes  pursuit of opportunities - capitalizing on environmental change to create value  Innovation and uniqueness - introducing new approaches to satisfy unfulfilled market needs  growth - not content to remain small  Will continue to be important in all societies  Will influence profit and not-for-profit organizations 31WUB.SI.49
  32. 32. Current trends and issues  Managing in an E-Business World  E-business - comprehensive term describing the way an organization does its work by using electronic (Internet- based) linkages with key constituencies  E-business - any form of business exchange or transaction in which parties interact electronically  Intranet - an internal organizational communication system that uses Internet technology and is accessible only by organizational employees 32WUB.SI.49
  33. 33. Take Home Message 33WUB.SI.49  Without a good management, it is impossible to reach the specific goal.  “Management is not only more complex than we think, but it is more complex than we can think.”  On other hand, “It is more flexible, if manage a efficient/ skilled manager.”
  34. 34. Thank You 34WUB.SI.49