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8/14/2019 Unit 1 - Historical Development
http://slidepdf.com/reader/full/unit-1-historical-development 1/31
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
5
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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
6
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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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Copyright © 2005 bySouth-Western, a division
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