Unformatted text preview: Module One
The History of Management What is Management?
Management is a set of activities directed at the
efficient and effective utilization of resources
with the aim of achieving one or more goals. 2 Who is a Manager?
Someone whose primary and major
responsibility is to carry out the management
process. 3 The Evolution of Management
Egyptians Romans Sumerians 3000 B.C. 2500 B.C. Chinese 2000 B.C. 1500 B.C. 1000 B.C. 500 B.C. A.D.500 A.D.1000 A.D.500 4 Classical Management Movement:
“The Classical Management
Movement” arose between
1885 – 1940
The Classical Management
is based on:
5 James Watt & Mathew Boulton
Implemented several management
Market research and forecast,
Planned site location.
Planned machine layout & work – flow
Standardization of product
6 James Watt & Mathew Boulton
In accounting and cost analysis, Watt &
Boulton developed and maintained statistical records and advanced control systems
with which they were able to calculate cost and profits for each machine.
Watt & Boulton developed worker
programs and executive training. 7 Robert Owen
The father of modern personnel management, in
Scotland, he worked on:
Improving working conditions in factories.
Raising the minimum age of working children.
Providing meals at the factories for on – duty
Making the community & the
(building houses, streets…)
8 Charles Babbage
Argued a profit-sharing system, in which workers
could profit from their productivity.
At the beginning of 20th century, management
began looking at methods to improve efficiency. 9 1. Scientific Management
Centers on ways to improve productivity.
In early days it centered on designing a job to
maximize individual outputs.
The pioneers of scientific management were
Frederick Taylor and Frank & Lilian Gilbreth 10 Frederick W. Taylor (1856-1915)
Develop a science for each element of the job.
Scientifically select employees and train them.
Continue to plan the work.
Taylor’s Theory of Scientific Management
Taylor focused on the relation between tasks and workers, his
theory is depending on maximize worker capacity and profits. 11 Frederick W. Taylor (1856-1915)
the developed four principles to increase efficiency in
workplace: Principle 1: Study the way workers perform their tasks, gather all the
informal job knowledge that workers possess, and experiment with
ways of improving the way tasks are performed.
Principle 2: Codify the new methods of performing tasks into written
rules and standard operating procedures.
Principle 3: Carefully select workers so that they possess skills and
abilities that match the needs of the task, and train them to perform
the task according to the established rules and procedures.
Principle 4: Establish a fair or acceptable level of performance for a
task, and then develop a pay system that provides a reward for
performance above the acceptable level. 12 Frederick W. Taylor (1856-1915)
Taylor's elements of Scientific Management:
Scientific design of every aspect of every task.
Time and Motion Studies.
Careful selection and training of every task.
Proper remuneration for fast and high-quality work.
Maximize output - increase pay.
Equal division of work and responsibility between worker
and manager. 13 Henry L. Gantt
A colleague of Taylor’s at Bethlehem Steel Works
Implemented a wage incentive program.
Gantt’s incentive system provided bonuses for
workers who completed their jobs in less time
than the standard.
Initiated a bonus plan for supervisors.
Developed planning and control techniques using a
simple graphic bar chart , The Gantt Chart, to
display relationships between planned and
completed work on one axis and elapsed time on the
14 The Gilbreths (1868-1924)
Frank and Lillian Gilbreth refined Taylor’s
methods and made many improvements to
time and motion studies, and industrials
efficiency & were early contributors to
personnel management. 15 2. General Administrative
Where as Scientific Management focused
on employees as individuals and their
General Administrative Management dealt
with total management organizations
(structure of organizations)
The primary contributor to this
area were Henri Fayol & Max Weber.
16 Henri Fayol (1841 - 1915)
According to Fayol, the basic functions of any
Planning Coordinating Organizing Controlling Commanding 17 According To Fayol
All activities involved with industrial project could
be separated in 6 sections:
1. Technical ; which involved in PRODUCTION
2. Commercial; includingBUYING
EXCHANGE 18 According To Fayol (Cont.)
3. Financial; which increased The SEARCH FOR
& CAPITAL OPTIMUM USE OF 19 According To Fayol (Cont.)
4. Security; which included PROTECTION OF
PROPERTIES and PERSONS.
5. Accounting; which included STATISTICAL
6. Managerial; included :
CONTROLLING COMMANDING 20 Henri Fayol (Cont.)
Fayol's Fourteen Principles of Management:
Principle 1: Division of work - limited set of tasks
Principle 2: Authority and Responsibility - right to give orders
Principle 3: Discipline - agreements and sanctions (authorize)
Principle 4: Unity of Command - only one supervisor
Principle 5: Unity of Direction - one manager per set of activities
Principle 6: Subordination of Individual Interest to General Interest
Principle 7: Remuneration of Personnel - fair price for services 21 Henri Fayol (Cont.)
Principle 8: Centralization - reduce importance of subordinate’s role
Principle 9: Line of authority
Principle 10: Order – org. / effective and efficient operations
Principle 11: Equity - kindliness and justice
Principle 12: Stability of occupancy of Personnel - sufficient
time for familiarity
Principle 13: Initiative - managers should rely on workers’
Principle 14: Esprit de corps - “union is strength”
22 Max Weber (1864 – 1920)
The father of bureaucratic management.
Characteristics of bureaucracy:
A formal, written Body Of Rules.
A formal recognized Hierarchical Chain Of
The principle that individuals and the posts
they occupy are separate.
Written records of activities and decisions. 23 Strengths and Weaknesses of Classical
Management Movement ( Classical Theory) Strengths: Policies, procedures and rules helped
productivity and performance in the organization
It was too scientific.
It took little or no account of human behaviour.
Creativity and innovation were not encouraged.
It doesn’t take into consideration the relationship
between organization & its environment. 24 Strengths and Weaknesses of Classical
Management Movement ( Classical Theory)
Classical Management Movement assumes that
each worker is an economic man; work harder
to make more money.
Classical Theorists regard employees as tools to
be used to achieve organizational goals rather
than as valuable resources. 25 Behavioral Management Movement
In the 1920s and 1930s, it was convinced that
Scientific Management was incomplete.
The “Behavioral Management Movement”
Human Psychology, Human Relations.
(human are not tools)
26 Behavioral Management
Differentiated from simple mechanical
efficiency, the “Behavioral Management
Movement” focused on the potential
importance of the individual in the workplace. 27 Human Relations
Recognizes that people have their own unique
needs and motives that they bring to the
workplace with them. 28 Human Relations (Cont.)
Hawthorne studies; were a series of
research that provided the catalyst for
the behavioral school. 29 One of the experiments at the Hawthorne
Plant of the Western Electric Company
involved in mica splitting 30 Abraham Maslow
In 1943 Abraham Maslow introduced a five –
tiered hierarchy of Needs.
The Needs were arranged from Lower Level
Physiological needs to the higher need for self
4. Esteem, and
31 Douglas Mc Gregor
In the late 1950s, he stressed the importance of
understanding the relation between motivation
and human nature. 32 Douglas Mc Gregor (Cont.)
He believed that managers can motivate
employees using one of two basic approaches.
The first was a negative theory labeled “theory X “
based on managers control a threaten employees to
motivate them (Direction and Control)
The second was a positive theory labeled “theory Y “
based on managers believe that people are
responsible and mature.
33 Theory X
1. The average human being has an inherent dislike
of work and will avoid it.
2. Most people must be controlled, directed, and
threatened with punishment
3. The average human being prefers to be directed,
wishes to avoid responsibility, has relatively little
ambition, wants security.
Neither explains nor describes human nature 34 Theory Y
4. External control and the threat of punishment are not the only
Commitment to objectives is a function of the rewards associated
with their achievement.
The average human being learns, under proper conditions, not only
to accept but to seek responsibility.
The capacity to exercise a high degree of imagination and creativity
in the solution of organizational problems is widely distributed in
the population A more positive perspective of human nature.
35 Theory X vs. Theory Y
Theory X Theory Y Employee is lazy Employee is not lazy Managers must
closely supervise Must create work
setting to build
initiative Create strict
rules & defined
rewards Provide authority to
36 Mc Clelland
Suggested 3 motives, which are formed by
the interaction of individual’s needs with
environmental factors. They are:
1. The need for achievement. 2. The need for power. 3. The need for affiliation Where as Maslow’s hierarchy of Needs
stressed on a uniform set of Needs. 37 Equity Theory
Developed by J. Stacey Adams.
Employees make comparisons of their job inputs and
outcomes relative to others.
Inequities influence the degree of effort which employees exert. 38 Strengths and Weaknesses of Behavioral
Management Movement ( Behavioral Theory) Strengths:
It is addressed against the mechanistic weaknesses
of the scientific theories. Focuses on the idea that employees are valuable
resources not tools.
New understandings; motivation, group dynamics.
Leadership are taken into consideration. 39 Strengths and Weaknesses of Behavioral
Management Movement ( Behavioral Theory) Weaknesses:
Difficulty in predicting human behaviour because of
complexity of individual behaviour
Individual needs were given too much priority over
the importance of the collective organizational ones. 40 Quantitative Management
Centers on adapting mathematical models
and processes to management situations.
There are 3 major areas:
1. Management Science
2. Operations Management
3. Management Information Systems 41 1. Management Science
Deals with the development
of mathematical models to
assist in :
Problem Solving Develops Advanced
Mathematical / Statistical,
Tools / Techniques for
42 2. Operations Management
Focus on the application of mathematical
& statistical tools to managing an
organization’s process and systems.
Centers more on application of
Management Science to organization. 43 3. Management Information
Is a system created specifically to store &
provide information to managers. 44 Strengths and Weaknesses of Quantitative
Developing complex quantitative techniques to assist
with decision making and problem solving.
It uses mathematical models to increase knowledge
organizational processes and situations.
It is a tool for implementing organizational planning
and controlling processes.
It places an emphasis on computers in decision
support systems. 45 Strengths and Weaknesses of Quantitative
It cannot predict or explain human behaviour in
It may sacrifice other managerial skills in order to
gain mathematical sophistication
Certain models may require impractical or unsubstantiated assumptions. 46 Modern Management Movement
Approaches to modern management includes:
The Process Approach.
The Systems Approach (System Theory)
The Contingency Approach (Contingency Theory)
The Strategic Management Approach
The Japanese Style Management Approach.
The Excellence Approach. 47 Modern Management Movement
It is a synergistic product.
The Classical, Behavioral And
Quantitative Movement, with
Systems Theory & Contingency
Management Theory integrated to
form the framework of the Modern
Management Movement 48 The Process Approach INPUTS PROCESS OUTPUTS Management Process (circular loop)
making) ORGANIZING CONTROLLING LEADING continuous 49 The Systems Approach (System
A system consists of connected parts;
joined to form a whole. 50 The Systems Approach (System Theory)
The organization takes resource (inputs) from the larger
system (environment), processes these resources, and
returns them in outputs to the environments Environment
Inputs Process Outputs 51 The Systems Approach (System
Two basic types of systems
Closed System: are not influenced by &
don’t interact with their environment.
Open System: recognize and respond to
their environment 52 Comparison Between Closed & Open
Item of Closed system Open system Structure Is formal hierarchy informal Routine Deals with routine tasks Deals with non-routine tasks Knowledge Found at the top Runs throughout the organization Interaction Vertical & follows the chain of Between staff and employees command vertically and horizontally Responsibility Is tied Is to the total organization Conflict Top down conflict management. Conflict is resolved among peer comparison 53 Comparison Between Closed & Open
Prestige Environment Closed system Open system Is internalized (rank) Is externalized (reputation, knowledge) Self – contained & don’t Not self contained & rely on the rely on environment environments for inputs and outputs 54 The Contingency Approach
A problem solving approach
It considers all major factors in a situation &
before making a decision.
The principles of Contingency Theory:
When a manager is faced or confronted with a
problem or a situation, he must examine important
contingencies, to determine which of several
potential solutions may be appropriate.
There are contingencies theories of Goal Settings,
Leadership, Motivation and Control.
55 Best Contingency Plan Problem
s groups Solution A Solution B Solution C Contingency Approach promotes
Organizational Effectiveness 56 Strategic Management
Definition Of Strategy
Chandler’s definition of strategy:
“it determines the basic long – term goals of
Strategy also includes courses of action &
allocation of resources to achieve goals 57 Ansoff Definition Of Strategy (1965)
“it is a rule for making decisions which are
determined by the product and market , the
growth , the competitive advantages &
synergy” 58 Mintzberg Definition Of Strategy
“It is a mediating force between an organization &
its environment” 59 Strategic Management
Concerns Primarily Controls Actions for org. Decision making
process strengths and
performance 4 2 S W 3
strategy Monitoring & evaluating
Internal & external
environ. opportunities Strategic
Management incorporates Business
environment Maximize Eliminates
threats opportunities 1 Organizational’s
policy focuses Efficient use
of org. assets formulating T
guidelines Objectives &
60 Strategic Management
Formulation 2 Environmental
Scanning 3 Strategic
1 4 Evaluation &
Control Strategic Management Involves 4 Basic
1. Environmental scanning.
2. Strategy formulation.
3. Strategy implementation.
4. Evaluation & control 61 Japanese Style Management
Deming introduced TQM In 1950
TQM is the model for Japanese – Style
TQM uses statistics to analyze variables in
production processes in order to improve the
product quality continuously 62 Japanese Style Management
Quality is meeting customer needs and expectations,
As customer needs are changing, the need to
continually focus on customer research became a
Deming’s basic philosophy on quality is that “productivity improves as variability decreases”
Deming also claims that management is
responsible for 94 % of quality problems 63 Japanese Style Management
Juran. Another pioneer of TQM, included 3 basic steps to
1. Structured annual improvement. 2. Major training programs. 3. Upper management leadership
He contends that:
Less than 20% of quality problems are because of workers.
The rest are caused by management & faulty processes. 64 Japanese Style Management
Crosby: best known for “zero defect”
He defines quality as “conformance to
requirements” and it can only be measured by
the cost of non – conformance.
He listed 3 components that can be used by
organization to prevent non – conformances:
65 The Excellence Approach
Focus of excellence management approach is
“improving management in order to gain or
maintain excellence within a corporation”
Was first introduced in early 1980s with the
publishing of Peters and Waterman's book,
“In Search of Excellence ”.
for organizations which are
considered excellent and proceeded to document
management practices they found, to be consistent
through out these organizations.
The authors research 66 Integrative Framework Of Management
concerns For efficiency
& productivity Quantitative
Quantitative Behavioral Theory
Behavior Theory Current
For Mang. Science
Models & Operation
Manag. The Process Approach
The Systems Approach Modern Management Movement
(Modern School) The Contingency Approach
The Strategic Management Approach
The Japanese Style Management
The Excellence Approach Effective & Efficient Management 67 Module Two
Managers and Managing Management Concept
Lets consider a few key concepts
Organizations Are collections of people who work together & coordinate
their actions to achieve their goals. A Goal Is a desired future outcome that an organization strives to
achieve. Management Is the planning, organizing, leading, & controlling of
resources to achieve organizational goals effectively &
efficiently. Resources Are assets such as people, machinery, raw materials,
information, skills, and financial capital. Managers Are the people responsible for supervising the use of an
organization's resources to achieve its goals
69 Organizational Performance
One of the most important goals that the
organization & its members try to achieve is
customer satisfaction for products and services 70 Organizational Performance
Is a measure of how efficiently & effectively
managers use resources to achieve organizational
goals & customer’s satisfaction.
Organizational Performance = Efficiency + Effectiveness 71 Efficiency
Is a measure of how well or how productively
resources are used to achieve a goal.
Organizations are efficient when managers
minimize the amount of input resources.
Best Allocation Of Resources 72 Effectiveness
Is a measure of the appropriateness of the
goals that managers have selected for the
organization to pursue, & of the degree to
which the organization achieves those goals.
Organizations are effective when managers
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