Unit 1 - Historical Development

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Definition of Management Management and Administration Nature Purpose Science or Art Development of Management Thought Contribution of Taylor and Fayol  Types of Business Organization.

Principles and practices of Management

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Art of making things donethrough others

Mary peter folletKnowing what to do andensuring whether

achieved in the cheapestway – F.W.Taylor

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Nature & purpose

Process of designing & maintaining an environmentin which individuals, working together in groups,efficiently accomplish selected aims.

Helps the people to carry out the managerial

functions of planning, organizing, staffing, leadingand controlling

Applies to any kind of organization Applies to managers at all organizational level

Helps the manager to create surplus output Effective and efficient productivity (output/ input)

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Interpersonal role – figurehead, liaison,leader

Information role – recipient, disseminator,

spokes person Decision role – entrepreneurial, disturbance

handler, resource allocator, negotiator.

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Particulars Administration Management

• Nature

•Scope

•Level

•Skills

•Represents

•Usage

• Thinking Function

•Determines broad

objectives andpolicies

• Top level function

•Conceptual andhuman skill•Owners who investcapital

•Government ,

Military,Educational

•Doing Function

•Implements plans

and achieves goalthrough people

•Middle and lowerlevel function• Technical andhuman skill•Paid individualswho work forremuneration•Business

organization4

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AdministrationManagement

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Top Ten Companies

General Electric -Fairfield, CT, U.S. Procter & Gamble -Cincinnati, OH, U.S. Nokia -Espoo, Finland Hindustan Unilever -Mumbai, India Capital One Financial -McLean, VA, U.S. General Mills -Minneapolis, MN, U.S. McKinsey  IBM -Armonk, NY, U.S. BBVA (Banco Bilbao Vizcaya Argentaria) 

-Bilbao, Spain Infosys Technologies -Bangalore, India

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Management as a Science

- It is a systematized body of knowledge

- It is a Social Science

- It is Scientific management SCIENCE –WHY? Methods of inquiry should be systematic Information can be ordered and analyzed. Results are communicable

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Management as a Art

ART-HOW? Managing as practice

-It is concerned with application of knowledge

- How to do things creatively and skillfully

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VerticalVertical

SpecializationSpecialization

 Top ManagersChief 

ExecutiveOfficer

MiddleManagers

Department

managers

Low levelManagersSupervisor

OfficeMangers

WorkersLaborers

 Technicians

99999

1199999

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Horizontal SpecializationHorizontal Specialization

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Companies which are running into successcreate surplus through productivity

operations .

Productivity =inputs/outputsEffectiveness and efficiency

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F.w.taylor (1856-1951) Performing task could be determined by

developing a true science of management

Individual worker can be suitable task andresponsibility Worker should be scientific education and

development

Cooperation between the managementlabour 

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Replacing the rule of thumb with science Harmony in group action Co-operation

Maximum output Development of workers

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1861-1919 50 –cent of bonus PERT, CPM

Navy louts 123 Gannt chart

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1878 -1972 Motion study Fatigue study

Workers welfare ‘

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1864-1920 Clearly defined regulations Technical competency

Performance appraisal

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1868-1933 Human relations Organizational structure

Behavioral management 

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1886-1961 Personal goal and informal group Team and team work

(motoral ,dupout ,GE)

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1924 to 1933 Western electric company Relation ship between the change in the

work place and productivity

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Hawthorne experiment

Feared that some of them would be fired out

Productivity decreasedBank wiring roomexperiments

 The workers feel pleased that their ideas arebeing heard.

Upward communicationincrease positiveattitude in the workenvironment

Interview with workers

 The workers felt that they are being watched1. Increased productivity

2. Increased- Increased-decreased

3. Increased

4.Increased- increased-peaked up

Relay assembly test.

1.Changes in wages (Paid foroverall Production)

2. Increased the break time(two 5 minutes, two 10minutes, six 5 minutes)

3.Providing food during

breaks4.Shortening the day time for30 Minutes, Shorteningmore, returning to original

productivity varied(2009)

Productivityincreased(1927-32)

Outcome

Other factors such as the weekly cycle of workor the seasonal temperature and so the initialconclusions were overstated and the effect wasweak or illusory

Motivational effect of the interest being shownin them

Changes in illumination

Study

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1841-1925 Founder of classical organization Managerial behavior

 Technical –relating production Commercial –buying, selling Financial –capital and optimum use

Security-protection of property Accounting-statistics

Managerial -

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Division of work Authority and responsibility Discipline Unity of command

Unity of direction Subordination of individual interest to the

general interest Remuneration of personnel Centralization Scalar chain Order

Equity

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Stability tenure Initiative Esprit decrops-union strength

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Describe the three branches of thetraditional viewpoint of management:◦ Bureaucratic

◦ Scientific

◦ Administrative

Explain the behavioral viewpoint’scontribution to management.

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Copyright © 2005 bySouth-Western, a division

of Thomson LearningAll rights reserved 28

Bureaucratic Management Scientific Management Administrative Management

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of Thomson LearningAll rights reserved 29

Refers to the use of rules, a set of hierarchy, a clear division of labor, anddetailed procedures.◦ Rules – formal guidelines for the behavior of 

employees on the job.◦ Impersonality – employees are evaluated

according to rules and objective data.

◦ Division of Labor – splitting work into specialized

positions.

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Benefits◦ Efficiency

◦ Consistency

◦ Functions best when routine tasks are needed

Drawbacks◦ Rigid rules and red tape

◦ Protection of authority

◦ Slow decision making

◦ Incompatibility with changing technology◦ Incompatibility with workers’ values