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Principles Of Management0333-887172700923338871727+923338871727
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Principles of Management
Management Yesterday &
Today
CHAPTER-2
AFTER STUDYING CHAPTER Two AND LISTENING TO MY LECTUER, YOU SHOULD BE ABLE TO:
Historical Background Of Management. Classical Approach. Quantitative Approach. Behavioral Approach. Contingency/Contemporary Approach
OrganizationBehavior
Scientific Management
General Administration
SystemApproach
ContingencyApproach
Major Approaches Of Management
Ancient Management Egypt (pyramids) China (Great Wall)
Adam Smith Published “The Wealth of Nations” in 1776
Advocated the division of labor (job specialization) to increase the productivity of workers
Industrial Revolution Substituted machine power for human labor Created large organizations in need of management
The first studies of management, which emphasized rationality and making
organizations and workers as efficient as possible.
ClassicalApproach
Scientific Management
An approach that involves using the scientific method to determine the
“One Best Way” for a job to be done.
The “father” of scientific management Published Principles of Scientific Management (1911)
The theory of scientific management» Using scientific methods to define the “one best
way” for a job to be done» Putting the right person on the job with the correct
tools and equipment» Having a standardized method of doing the job» Providing an economic incentive to the worker
Fredrick Winslow Taylor
Focused on increasing worker productivity through the reduction of wasted motion
Developed the micro chronometer to time worker motions and optimize performance.
How Do Today’s Managers Use Scientific Management? Use time and motion studies to increase productivity Hire the best qualified employees Design incentive systems based on output
Frank and Lillian Gilbreth
General Administrative Theory
An Approach to management that focuses on describing what mangers
do and what constitutes good management practice.
Believed that the practice of management was distinct from other organizational functions like Finance, Production, Distribution, and other typical business functions.
Henri Fayol
Fayal's 14 principles of Management
Developed fourteen principles of management that applied to all organizational situations.1. Division of labor.2. Authority.3. Discipline.4. Unity of command.5. Unity of direction.6. Subordination of individual interests to the general interests.7. Remuneration.8. Centralization.9. Scalar chain.10.Order.11.Equity.12.Stability.13.Initiative.14.Esprit de corps.
Developed a theory of authority structures and relation in 1900s,called bureaucracy.
Bureaucracy. A form of organization characterized by
division of labor ,a clear defined hierarchy, detailed rules and regulations, and impersonal
relationships.
Max Weber.
Weber’s Ideal Bureaucracy
Quality Management
A philosophy of management driven by continual improvement in the quality of
work processes and responding to customer needs and expectations
oIntense focus on the customer.oConcern for continual improvementoProcess-focused.oImprovement in the quality of everything.oAccurate measurement.oEmpowerment of employees.
What is Quality Management?
Early Advocates
The study of the actions of people at work; people are the most important asset of
an organization
Early Advocates of OBEarly Advocates of OB
Hawthorne studies
A series of studies during the 1920s and 1930s that provided new insights into
individual and group behavior
• Experimental findingsExperimental findings Productivity unexpectedly increased under imposed Productivity unexpectedly increased under imposed
adverse working conditions.adverse working conditions. The effect of incentive plans was less than expected.The effect of incentive plans was less than expected.
• Research conclusionResearch conclusion Social norms, group standards and attitudes more Social norms, group standards and attitudes more
strongly influence individual output and work strongly influence individual output and work behavior than do monetary incentives.behavior than do monetary incentives.
A series of productivity experiments A series of productivity experiments conducted at Western Electric from 1927 to conducted at Western Electric from 1927 to
1932.1932.
The field of study concerned with the actions (behavior) of people at work.
Organization Behavior
A set of interrelated and interdependent parts arranged in a manner that
produces a unified whole.
System Approach
Basic Types of Systems
The Organization as an Open System
A management approach which says that organization are different, face different situations (contingencies), and require
different ways of managing
Contingency Approach
Popular Contingency Variables
• Organization size• As size increases, so do the problems of coordination.
• Routineness of task technology• Routine technologies require organizational
structures, leadership styles, and control systems that differ from those required by customized or non-routine technologies.
• Environmental uncertainty• What works best in a stable and predictable
environment may be totally inappropriate in a rapidly changing and unpredictable environment.
• Individual differences• Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity, and expectations.