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Management Approaches
The document discusses the evolution of management thought, highlighting various approaches, including scientific management, bureaucratic management, and administrative management. It emphasizes the importance of efficiency and effectiveness in management, as well as the impact of social and economic factors. The text also explores modern management practices such as total quality management and management by objectives, showcasing influential figures and theories in the field.
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Management Approaches
- 1. Image retrieved fromhttp://www.strategicmgtpartners.com/library/iceobenefits.html
- 2. MANAGEMENT encompasses an arrayof different functions undertaken to accomplish a task successfully process of designing and maintaining an environment in which individuals, working to gather in groups, efficiently accomplish selected aims has many approaches --varying from a problem to problem solving style to the change each approach has its own limitations and advantages. about „getting things done‟
- 3. MANAGEMENT “Management is theart of knowing what you want to do and then seeing that it is done in the best and cheapest way.” - F .W. Taylor “Management is a multipurpose organ that manage a business and manages Managers and manages Workers and work.” -Peter Drucker
- 4. The Value ofStudying MANAGEMENT The universality of management Good management is needed in all organizations. The reality of work Employees either manage or are managed. Rewards and challenges of being a manager Management offers challenging, exciting and creative opportunities for meaningful and fulfilling work. Successful managers receive significant monetary rewards for their efforts.
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- 6. Efficiency and Effectivenessin Management Managerial Concerns Efficiency “Doing things right” Getting the most output for the least inputs Effectiveness “Doing the right things” Attaining organizational goals
- 7. Efficiency and Effectivenessin Management
- 8. ENVIRONMENT FACTORS SOCIAL INFLUENCE • Theaspects of culture that influence norms and values ECONOMIC INFLUENCE • The concept to availability, production, and distribution of resources within a society POLITICAL INFLUENCE • The impact of political institutions on individuals and organisations
- 9. EVOLUTION OF MANAGEMENTTHOUGHT
- 10. DIFFERENT APPROACHES • SCIENTIFIC •ADMINISTRATIVE • BUREAUCRATIC CLASSICAL • GROUP INFLUENCES • MASLOW’S NEED THEORY • THEORY X AND THEORY Y • HAWTHORNE STUDIES BEHAVIORAL • THEORY Z • TOTAL QUALITY MANAGEMENT • MANAGEMENT BY OBJECTIVES • SITUATIONAL LEADERSHIP MODERN
- 12. Focuses on the individualworker‟s productivity Focuses on the functions of management Focuses on the overall organizational system CLASSICAL APPROACH
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- 15. I. SCIENTIFIC MANAGEMENT Fatherof SM: Frederick Taylor • develop a scientific approach for each element of one‟s work • scientifically select, train, teach and develop each worker • cooperate with workers to ensure that jobs match plans and principles • ensure appropriate division of labor FOUR PRINCIPLES • Task Performance • Supervision • Motivation THREE AREAS OF FOCUS • Piece-rate-incentive system • Time and motion study TWO MANAGERIAL PRACTICES
- 16. I. SCIENTIFIC MANAGEMENT Fatherof SM: Frederick Taylor CONT‟D • SM became nationally known, but the selective implementation of the principles created more harm than good. • Workers felt that as their performance increased, managers required them to do more work for the same pay. • Increases in performance meant fewer jobs and greater threat of layoffs • Monotonous and repetitive • Dissatisfaction
- 17. I. SCIENTIFIC MANAGEMENTcont’d Henry Gantt and The Gilberths HENRY GANTT • Most famous for developing the Gantt chart in the 1910s. • Implemented a wage incentive program FRANK GILBERTH • Specialized in time and motion studies to determine the most efficient way to perform tasks. • Used motion pictures of bricklayers to identified work elements (therbligs) such as lifting and grasping LILLIAN GILBERTH • A strong proponent of better working conditions as a means of improving efficiency and productivity.
- 18. I. SCIENTIFIC MANAGEMENTcont’d Henry Gantt and The Gilberths
- 19. I. SCIENTIFIC MANAGEMENTcont’d Henry Gantt and The Gilberths
- 20. II. BUREAUCRATIC MGMT. Focuseson the overall organizational system. Need for organizations to function on a rational basis Bureaucratic management is based upon: • Firm rules • Policies and procedures • A fixed hierarchy • A clear division of labor
- 21. II. BUREAUCRATIC MGMT.cont’d Father of BM Theory: Max Weber • A German sociologist and historian who envisioned a system of management • “a bureaucracy is a highly structured, formalized and impersonal organization.” MAX WEBER • Division of labor • Hierarchy of authority • Rules and procedures • Impersonality • Employee selection and promotion FIVE PRINCIPLES
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- 30. III. ADMINISTRATIVE MGMT. Focusedon principles that could be used by managers to coordinate the internal activities of organizations Five management functions • planning • organizing • commanding • coordinating • controlling
- 31. III. ADMINISTRATIVE MANAGEMENTcont’d HENRI FAYOL’s PRINCIPLES of MANAGEMENT 1. Division of labor 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to the common good 7. Remuneration of personnel 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability 13. Initiative 14. Esprit de corps
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- 48. BEHAVIORAL APPROACH The studyof how managers should behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals.
- 49. BEHAVIORAL APPROACH The behavioralschool of management emphasized what the classical theorists ignored. Acknowledged the importance of human behavior in shaping management style. Personalities • Mary Parker Follett • Douglas McGregor • Chester Barnard • Elton Mayo
- 50. SELF ACTUALIZATION NEED FOR SELF ESTEEM NEEDFOR SOCIAL RELATIONS NEED FOR SECURITY PHYSIOLOGICAL NEEDS Abraham Maslow‟s Hierarchy of Human Needs BEHAVIORAL APPROACH
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- 52. Mary Parker Follett ONEFFECTIVE WORK GROUPS FOUR PRINCIPLES OF COORDINATION • Coordination requires that people be in direct contact with one another. • Coordination is essential during the initial stages of any endeavor. • Coordination must address all factors and phases of any endeavor. • Coordination is a continuous, ongoing process. BEHAVIORAL APPROACH cont’d
- 53. Mary Parker Follett ONEFFECTIVE WORK GROUPS BEHAVIORAL APPROACH cont’d
- 54. Mary Parker Follett ONEFFECTIVE WORK GROUPS BEHAVIORAL APPROACH cont’d
- 55. Mary Parker Follett ONEFFECTIVE WORK GROUPS BEHAVIORAL APPROACH cont’d
- 56. Douglas McGregor's ProposedStyles THEORY X • Most people dislike work and they avoid it when they can. • Coerced and threatened with punishment before they work. • Avoid responsibility and have little ambition. THEORY Y • Work is a natural activity like play or rest. • Capable of self direction and self control. • Committed to organizational objectives. BEHAVIORAL APPROACH cont’d
- 57. Elton Mayo’s View Aimedto understand how psychological and social processes interact with the work situation to influence performance Work represents the transition from scientific management to the early human relations movement. Emphasized on workers themselves and needs to belong to a group BEHAVIORAL APPROACH cont’d
- 58. “HAWTHORNE EFFECT” • Workersperform and react differently when researchers observe them. • Productivity increased because attention was paid to the workers in the experiment. • Phenomenon whereby individual or group performance is influenced by human behavior factors BEHAVIORAL APPROACH cont’d Elton Mayo’s Hawthorne Study (1924-1932)
- 59. “HAWTHORNE EFFECT” • Thefinding that a manager’s behavior or leadership approach can affect worker’s level of performance. BEHAVIORAL APPROACH cont’d Elton Mayo’s Hawthorne Study (1924-1932)
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- 62. William Ouchi‟s TheoryZ assumes employees have an interest in good working relationships with management and other employees MODERN APPROACH
- 63. William Ouchi‟s TheoryZ Management generally has high confidence in employees, who are encouraged to participate in the management decision making. MODERN APPROACH cont’d
- 64. William Ouchi‟s TheoryZ Employees are viewed as long-term assets who will stay with the same firm throughout their careers. MODERN APPROACH cont’d
- 65. William Ouchi‟s TheoryZ MODERN APPROACH cont’d
- 66. William Ouchi‟s TheoryZ MODERN APPROACH cont’d
- 67. William Ouchi‟s TheoryZ THEORY Z Long-term Employment Consensual Decision Making Individual Responsibility Slow Evaluation & Promotion Informal Control With Formalized Measures Moderately Specialized Career Path Holistic Concern MODERN APPROACH cont’d
- 69. Total Quality Management comprehensive approach for improving product quality and get customer satisfaction management philosophy of improving product quality through everyone’s commitment & involvement to satisfy consumer needs MODERN APPROACH cont’d
- 70. Total Quality Management Walter A. Shewhart (1920s & 1930s) Grandfather of quality control Contributed to understand the process of variability Developed concept of statistical control charts MODERN APPROACH cont’d
- 71. Total Quality Management W. Edwards Deming (1940s & 1950s) Father of quality control Stressed management’s responsibility for quality Developed “14 points” to guide companies in quality improvement MODERN APPROACH cont’d
- 72. Total Quality Management W. Edwards Deming (1940s & 1950s) Japanese established “Deming Prize” in his name 15% of quality problems are actually due to worker error 85% of quality problems are caused by systems and errors MODERN APPROACH cont’d
- 73. Total Quality Management Joseph M. Juran (1950s) Defined quality as “fitness for use” Developed concept of cost of quality Originated idea of quality trilogy Quality planning Quality control Quality improvement MODERN APPROACH cont’d
- 74. Total Quality Management Armand V. Feigenbaum (1960s) Introduced the concept of total quality control MODERN APPROACH cont’d
- 75. Total Quality Management Philip B. Crosby (1970s) Coined phrase “quality is free” Introduced concept of zero defects Developed the phrase “Do it right the first time” MODERN APPROACH cont’d
- 76. Total Quality Management TQM focuses on serving the customer’s quality needs MODERN APPROACH cont’d
- 77. Total Quality Management TQM uses continuous improvement, quality at the source, employee empowerment, quality tools, teams, benchmarking, and supplier certification MODERN APPROACH cont’d
- 78. Total Quality Management Four dimensions: product/service design, conformance, easy of use, post-sale support MODERN APPROACH cont’d
- 79. Total Quality Management TQMCompetitive Benefit MODERN APPROACH cont’d
- 80. Total Quality Management It makes the company a leader Fastens the team work Makes the company more sensitive to customer needs. Makes the company adapt more readily to changes. Quality improves Increased productivity Staffs are more motivated Cost reduced MODERN APPROACH cont’d
- 82. Management By Objectives(MBO) MODERN APPROACH cont’d also known as Management By Results (MBR), is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them
- 83. Management By Objectives(MBO) MODERN APPROACH cont’d
- 84. Management By Objectives(MBO) MODERN APPROACH cont’d
- 85. Management By Objectives(MBO) MODERN APPROACH cont’d
- 86. Management By Objectives(MBO) MODERN APPROACH cont’d Advantages Develops result-oriented philosophy Formulation of dearer goals Facilitates objective appraisal Raises employee morale Facilitates effective planning Acts as motivational force Facilitates effective control Facilitates personal leadership
- 87. Management By Objectives(MBO) MODERN APPROACH cont’d Limitations Time-consuming Reward-punishment approach Increases paper work Creates organizational problems Develops conflicting objectives Problem of coordination Lacks durability Problems related to goal-setting Lack of appreciation
- 88. Management By Objectives(MBO) MODERN APPROACH cont’d Turning their aims into successful actions, forces managers to master five basic operations: 1) setting objectives 2) organizing the group 3) motivating and communicating 4) measuring performance 5) developing people, including yourself
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- 90. Key Reference Evolution ofManagement Thought by Bhavin Aswani, posted Nov. 26, 2012 http://www.slideshare.net/bhavinaswani/evolution-of- management-thought-15357449?qid=61275941-4815-4988-87c1- f57ba7fbfc1f&v=qf1&b=&from_search=4
- 91. Other References The Evolutionof Management Study Chapter 2 Posted by Management 2 on Apr. 11, 2009 http://www.slideshare.net/bsetm/chapter-2-the-evolution-of- management-theory?qid=05f93aab-81b0-475e-954b- c0aa2c6ceb2a&v=qf1&b=&from_search=1 Management Yesterday and Today Posted by Management 2 on Apr. 11, 2009 http://www.slideshare.net/bsetm/chapter-2-the-evolution-of- management-theory-written-in-different-manner?qid=606c7b90- 286a-4a98-95e2-613238e6f09c&v=qf1&b=&from_search=3
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