1) The document discusses the evolution of management theory from early management practices to modern approaches. 2) It describes key thinkers and schools of thought including scientific management, classical organizational theory, behavioral school, and management science. 3) Modern approaches emphasize a dynamic and engaged approach to managing organizations in changing, globalized, and diverse environments.

1. Lecture
Managing and
managers
Chapter 1
Management by Stoner

2. Who Are Managers?
Where Do They Work?
• Organization
– Two or more people who work together in a
structured way to achieve a goal or a set of goals.
• Goal
– The purpose that an organization strives to achieve.
Goals are fundamental elements of organization
• Common Characteristics of Organizations
– Distinct purpose
– People working together
– A deliberate systematic structure
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3. Dept. of IPE, BUET 1-3

4. How Are Managers Different from
Nonmanagerial Employees?
• Nonmanagerial Employees
– People who work directly on a job or task and
have no responsibility for overseeing the work of
others. Ex: associates, team members
• Managers
– Individuals in organizations who are responsible
for directing the efforts and activities of others
aimed at helping organizations achieve their goals.
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5. What Is Management?
• Management
– The process of getting things done effectively and
efficiently, with and through people
– The process of planning organizing leading and controlling
the work of organization members and of using all
available organizational resources to reach stated
organizational goals
• Effectiveness
– “Doing the right thing”, doing those tasks that help an
organization reach its goals
• Efficiency
– “Doing things right”. Concerned with the means, efficient
use of resources like people, money, and equipment
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6. Four Management Functions
Henri Fayol, a French industrialist in the early twentieth century, proposed that all
managers perform five management activities: plan, organize, command, coordinate and
control. Today these management functions have been condensed to four.
• Planning
– Defining the organizational purpose and ways to achieve it
– The process of establishing goals and a suitable course of action for achieving
those goals
• Organizing
– The process of engaging two or more people in working together in a
structured way to achieve a specific goal or a set goals
• Leading
– The process of directing and influencing the task-related activities of group
members or an entire organization
• Controlling :
– The process of ensuring that actual activities conform to planned activities
– Monitoring, comparing, and correcting work performance
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7. What Roles Do Managers Play?
In the 1960s, Henry Mintzberg did an empirical study of chief
executives and discovered that managers were engaged in a
number of varied, un-patterned, and short-duration activities. He
defined management by categorizing what managers do based on
the managerial roles they perform at work. Henry Mintzberg
observed that a manager’s job can be described by ten roles
performed by managers in three general categories,
• Interpersonal Roles
– Figurehead, Leader, and Liaison
• Informational Roles
– Monitor, Disseminator and Spokesperson
• Decisional roles
– Entrepreneur, Disturbance Handler, Resource Allocator and
Negotiator
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8. Types of Managers
1-8
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9. Management Level
• Top Managers
– Responsible for making decisions about the direction
of the organization.
– Examples; President, Chief Executive Officer, Vice-
President
• Middle Managers
– Manage the activities of other managers.
– Examples; District Manager, Division Manager
• First-line Managers
– Responsible for directing nonmanagerial employees
– Examples; Supervisor, Team Leader
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10. Functional and General Managers
• Function Managers
– The functional manager is responsible for only one
functional area or organizational activity, such as
production, marketing or finance
• General Managers
– The general manager is responsible for all
functional activities for an organization; and
oversees a complex unit, such as a company, a
subsidiary or an independent operating division.
Ex. President, Chief Executive Officer
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11. What Skills Do Managers Need?
Henry Fayol identified three basic kinds of skills
• Conceptual Skills
– The ability to coordinate and integrate all of an
organization’s interests and activities
• Interpersonal/Human Skills
– The ability work with, understand and motivate other
people as individuals or in groups. Ex. communicate,
motivate, mentor and delegate
• Technical Skills
– The ability to use the procedures, techniques, and
knowledge of a specialized field. Based on specialized
knowledge required for work
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12. What Skills Do Managers Need?
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Relative skills Needed for effective performance at
different levels of management
Top Management Conceptual Skill
Middle Management Human Skill
First-line Management Technical Skill

13. The challenges of Management
• The need for Vision
– Ex. New Technologies
• The need for Ethics
– Ex. Industrial pollution
• The need for Responsiveness to cultural
Diversity
– Ex. Have to handle people from different cultures
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The Evolution of
Management Theory
Chapter 2
Management by Stoner
2Lecture

15. Early Management
• Management has been
practiced a long time.
• Organized endeavors
directed by people
responsible for
planning, organizing,
leading and controlling
have existed for
thousands of years
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17. Scientific Management School(1890-1940)
• Frederick W. Taylor
– Described scientific management
as a method of scientifically
finding the “one best way to do a
job”
– Scientific selection of worker
– scientific education and
development.
– Intimate and friendly
cooperation between
management and labor.
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18. Scientific Management School(1890-1940)
• Limitations
– Working harder and faster would
exhaust whatever work available.
– Pressure on employee to work
faster
– More worker joined unions and
mistrust and suspicion is
reinforced.
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19. Scientific Management School(1890-1940)
• Henry L. Gantt
• Worked with Taylor. Gantt began to reconsider
Taylor’s incentive system, abandon the
differential rate system. His new idea was as
follows:
• Every worker who finished a day’s assigned
work load would win a 50-cent bonus. The
supervisor would earn a bonus for each
worker who reached the daily standard, plus an
extra bonus if all workers reached it. Every
worker’s progress was rated publicly and
recorded on individual bar chart. Other
contribution: Gantt chart
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20. Frank & Lillian Gilbreth
• Contributed to the scientific management
movement as a husband and wife team.
• In their conception motion and fatigue
were intertwined. Every motion that was
eliminated reduced fatigue.
• Used motion picture camera to find most
economical motion for each task to
upgrade performance and reduce fatigue
• Aim was to help workers to reach their full
potential as human beings.
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Scientific Management School(1890-1940)

21. Classical Organization Theory School
(1940-1990)(General Administrative Theory)
– Max Weber focused on what
constituted good management
– He described the bureaucracy as an
ideal rational form of organization
– He stressed for a strictly defined
hierarchies governed by clearly
defined regulations and line of
authority. Performance evaluations
should merit basis.
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22. Mary Parker Follett:
 Follett was convinced that no one could
become a whole person except as a member of
a group; human being grew through their
relationship with others in organization.
 she believed that the artificial distinction
between managers (order givers) and
subordinates (order takers) obscured this
natural partnership.
 She was a great believer in the power of the
group, where individuals could combine their
diverse talents into something bigger.
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Classical Organization Theory School
(1940-1990)

23. Chester I. Barnard
 People who come together in formal organizations
to achieve ends they can not accomplish working
alone. But as they pursue the organization’s goal,
they must also satisfy their individual needs. So,
an enterprise can operate efficiently and survive
only when the organization’s goal are kept in
balance with the needs of the individuals working
for it.
 Barnard believed that individual and organizational
purposes could be kept in balance if managers
understood an employee’s zone of indifference –
that is, what the employee would do without
questioning the manager’s authority.
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Classical Organization Theory School
(1940-1990)

24. Classical Organization Theory School
(1940-1990)
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Henri Fayol identified five management
functions and 14 management principles (see
details from book)

25. Behavioral School (1920-1990)
• Maslaw’s Need
Theory
– Needs that people are
motivated to satisfy fall
into a hierarchy.
– Lower level need must be
satisfied before higher
level need is met.
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26. Behavioral School(1920-1990)
• McGregor’s Theory
– Distinguished two basic assumption about
people and their approach to work.
– Theory X Manager assumed that people are
usually reluctant to work. They must be
constantly motivated to make them work.
– Theory Y managers assume that, people are
eagerly approach their work and opportunity
to develop their creative capacity.
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27. The Hawthorne Experiment
• Studies was conducted at Western Electric Company near
Chicago from 1924 to 1933 by Elton Mayo and his
colleagues.
• The study began as an attempt to investigate the
relationship between the level of lighting in the workplace
and worker productivity.
• But this experiment provided new insights into individual
and group behavior in the behavior of people at work.
• Employees work harder if they believe management is
concerned about their welfare, or simply if they receive
social attention.
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28. • Quantitative techniques (Operations Research) were used to
improve decision making.
• It was evolved from mathematical and statistical solutions
developed for solving military problems during World War II.
• The management science school gained popularity through two
post war (WW-2 & Vietnam war) phenomena.
• First, the development of high-speed computers and of
communications among computers provided the means for
tackling complex and large-scale organizational optimization
related problems.
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Management Science School

29. Management Science School
• Second, Robert McNamara implemented
a management science approach at Ford
Motor Company in the 1950s and 1960s.
• Robert McNamara was an executive of
Ford motor company…later US secretary
of defense during J F Canady period…who
started mass production of M-16 via Colt
(invented by Eugene Stoner in Armalite
Co.) for US army , replacing M-14 as
standard issue assault rifle, during
Vietnam war…he was one of the great
supporter of mass production system .
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30. System Approach
• View of the organization as a unified, directed system
of interrelated parts. The point of the systems
approach is that managers(of individual departments)
cannot function wholly within the confines of the
traditional organization chart. They must mesh their
department with the whole enterprise.
• Some Key Concepts:
Subsystems, Open and closed system, System
boundary, Flows, Feedback, Synergy.
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31. Contingency Approach
• Also known as Situational Approach.
• Fred Feildler first popularized this approach,
which says that organizations, employees, and
situations are different and they require
different ways of managing.
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32. Dynamic Engagement Approach
• Dynamic implies continuous change, growth
and activity; engagement implies intense
involvement with others.
• So, dynamic engagement best expresses the
vigorous way today’s managers focus on
human relationships and quickly adjust to
changing conditions over time.
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33. Dynamic Engagement Approach
Six different themes about management theory
are emerging under the umbrella that we call
dynamic engagement. These are---
• New organizational environments
• Ethics and Social Responsiveness
• Globalization and management
• Inventing and reinventing organizations
• Cultures and multiculturalism
• Quality.
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