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
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2. Presented To:
A.B. M. Siddique
Asst. Professor
Department of Business Administration
World University of Bangladesh
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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
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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
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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
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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
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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
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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).
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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.
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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.
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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
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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
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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
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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
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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
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33. Take Home Message
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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.”
