cont mang.ppt - Module One The History of Management What is Management Management is a set of activities directed at the efficient and effective

cont mang.ppt - Module One The History of Management What...

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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 Greeks Venetians Babylonians 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: Scientific Management. General Administrative Management 5 James Watt & Mathew Boulton Implemented several management techniques including: Market research and forecast, Planned site location. Planned machine layout & work – flow requirements. Production planning Standardization of product components. 6 James Watt & Mathew Boulton (Cont.) 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 employees. Making the community & the factory attractive (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. Supervise employees. 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) Taylor 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 other. 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 Management Where as Scientific Management focused on employees as individuals and their tasks, 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 manager are: 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 SELLING 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 ANALYSIS. 6. Managerial; included : PLANNING ORGANIZING COORDINATING 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’ initiative Principle 14: Esprit de corps - “union is strength” members” “loyal 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 Command. Recognized standards. 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 Weaknesses: 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) (Cont.) 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” concerns with: Human Psychology, Human Relations. (human are not tools) Motivation Leadership. 26 Behavioral Management Movement (Cont.) 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 – actualization: 1. physiological, 2. safety, 3. social, 4. Esteem, and 5. self-actualization 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 Three Assumptions 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 Assumptions: 1. 2. 3. 4. External control and the threat of punishment are not the only strategies 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 workers 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 Movement 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 : Decision Making Problem Solving Develops Advanced Mathematical / Statistical, Tools / Techniques for managers. 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 Systems Is a system created specifically to store & provide information to managers. 44 Strengths and Weaknesses of Quantitative Management Movement Strengths: Developing complex quantitative techniques to assist with decision making and problem solving. It uses mathematical models to increase knowledge and comprehension relating to complex 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 Management Movement Weaknesses: It cannot predict or explain human behaviour in organizations. 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) PLANNING (decision making) ORGANIZING CONTROLLING LEADING continuous 49 The Systems Approach (System Theory) 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 Organization Inputs Process Outputs 51 The Systems Approach (System Theory) 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 Systems 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 Systems (cont.) Item of comparison 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, Planning, Organization Design, Job Design, Leadership, Motivation and Control. 55 Best Contingency Plan Problem or situation Contingencie 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 the corporation” 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 (Late 1970s) “It is a mediating force between an organization & its environment” 59 Strategic Management Concerns Primarily Controls Actions for org. Decision making process strengths and weaknesses Long-term performance 4 2 S W 3 strategy Monitoring & evaluating Internal & external environ. opportunities Strategic Management incorporates Business policy environment Maximize Eliminates threats opportunities 1 Organizational’s survival O Business policy focuses Efficient use of org. assets formulating T General guidelines Objectives & goals 60 Strategic Management Strategy Implementation Strategy Formulation 2 Environmental Scanning 3 Strategic Management 1 4 Evaluation & Control Strategic Management Involves 4 Basic Components: 1. Environmental scanning. 2. Strategy formulation. 3. Strategy implementation. 4. Evaluation & control 61 Japanese Style Management Approach Deming introduced TQM In 1950 TQM is the model for Japanese – Style management. TQM uses statistics to analyze variables in production processes in order to improve the product quality continuously 62 Japanese Style Management Approach (Cont.) Quality is meeting customer needs and expectations, As customer needs are changing, the need to continually focus on customer research became a necessity. 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 Approach (Cont.) Juran. Another pioneer of TQM, included 3 basic steps to progress: 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 Approach (Cont.) 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: Determination. Education. Implementation. 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 Theory Classical School Theory Classical Management Perspective Current concerns For efficiency & productivity Quantitative School Quantitative Behavioral Theory Theory Behavioral Management Perspective Current concerns For organizational Behavior Theory Current concerns Management Perspective 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 choose appropr...
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