Robbins Mgmt11 Ppt01a

MH-2

• Describe some early management examples• Explain the various theories in the classical approach• Discuss the development and uses of the behavioral

approach• Describe the quantitative approach• Explain the various theories in the contemporary

approach

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

MH-3

Historical Background of Management

• Ancient Management– Egypt (pyramids) and China (Great Wall) – Venetians (floating warship assembly lines)– Qutub Minar and Taj Mahal

• Adam Smith The Wealth of Nations in 1776– Advocated the division of labor (job specialization) to increase the productivity of

workers– i.e breakdown of jobs into narrow and respective tasks– Example pin manufacturing company divided work amongst 10 workers which resulted

in production of 48000 pins in a day. But a single worker could hardly produce 10 pins in a day.

• Industrial Revolution– Substituted machine power for human labor– Large factories needed management to

• forecast the demand, • ensures that enough material is provided to produce the products• Assign tasks and daily activities and so on.


MH-4Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Exhibit MH-1: Major Approaches to Management


MH-6

Classical Approach

• First studies of management which emphasized rationally and making organizations and workers as efficient as possible.


MH-7

Scientific Management

• Fredrick Winslow Taylor

– The “father” of scientific management

• 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

• Now a days, almost all companies are using same methods. Aircraft to car manufacturing companies, food to textile manufacturing companies.


MH-8

Exhibit MH-2


MH-9

Frank and Lillian Gilbreth

– Lillian studied and eliminated inefficient hand and body motions, which increased overall productivity and efficiency of the work.

– Gilbreth experimented that with the proper tools and equipment work performance can be optimized.

– Developed a device called microchronometer which records the worker’s motions and time spent during each motion.


MH-10

General Administrative Theory• An approach to management that focuses on describing what mangers do and what

constitutes good management practice.

• Henri Fayol– Believed that the practice of management was distinct from other organizational

functions (like production, distribution, finance, accounting etc)– Developed 14 principles of management that applied to all organizational

situations (exhibit MH-3)

• Max Weber– Developed a theory of authority based on an ideal type of organization

(bureaucracy) (exhibit MH-4)• Emphasized rationality, predictability, impersonality, technical competence,

and authoritarianismEven Weber’s bureaucracy was an attempt to formulate as ideal prototype for

organization, but still some bureaucratic mechanisms are necessary to ensure that resources are being used efficiently and effectively, like Cisco Systems, Infosys, etc


MH-11

Exhibit MH-3


MH-12

Exhibit MH-4


MH-13

Quantitative Approach• Quantitative Approach

– Also called operations research or management science• American West Airlines used Reverse Pyramid as Quantitative Approach which

saved 2 minutes in boarding process

– Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems

– Focuses on improving managerial decision making by applying:• Statistics, optimization models, information models, and computer simulationsFor example; • Linear programing is a technique that managers use to improve resource allocating

decisions• Work scheduling can be more efficient as a result of critical path scheduling

analysis. • The economic order quantity model helps managers determine optimum inventory

levels.


MH-14

Total Quality Management TQM

• Total Quality Management (TQM), a management philosophy dedicated to continuous improvement and emphasizing customer needs and expectations. (Exhibit 2-5)

• Continuous improvement is not possible without accurate measurements, which require statistical techniques that measure every critical variable in the organization’s work process.

• In 2006, Dell announced a world wide recall of certain models of laptops that contained defective batteries.

• Speed Tex, a leading manufacturers of Knit apparel textiles, have a long tradition of quality and customers satisfaction. As a part of TQM philosophy, they reduced the cost of manufacturing by setting up all production lines as ‘U’ line bundle system, including all finishing processes.


MH-15

Exhibit 2-5• Intense focus on the customers.

– Those outsiders who buy organization’s product or service and internal customers who interact with and serve others in the organization.

• Concern for continual improvement– Quality management is a commitment to never being satisfied. Quality can always be improved.

• Process focused– Quality management focuses on work processes.

• Improvement in the quality of everything the organizations does– This relates to the final product, how the organization handles deliveries, how rapidly it responds to

complaints, how politely the phones are being answered and the like.

• Accurate measurement – Quality management uses statistical techniques to measure every critical variable in the

organizations operations. These are compared against standards to identify problems, trace them to their root cause, and eliminate them.

• Empowerment of employees– Quality management involves the people on the line in the improvement process. Teams are widely

used in quality management programs as empowerment vehicles for finding problems and solving them.


MH-16

Organizational Behavior

• Organizational Behavior (OB)– The study of the actions of people at work; people

are the most important asset of an organization

• Early OB Advocates– Robert Owen– Hugo Munsterberg– Mary Parker Follett– Chester Barnard


MH-17

Exhibit MH-5


MH-18

The Hawthorne Studies

• A series of productivity experiments conducted at Western Electric from 1924 to 1932– Experimental findings

• Productivity unexpectedly increased under imposed adverse working conditions.

• The effect of incentive plans was less than expected.

– Research conclusion• Social norms, group standards and attitudes more

strongly influence individual output and work behavior than do monetary incentives.


MH-19

Exhibit MH-6


MH-20

The Systems Approach

• System - a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

• Closed systems• Are not influenced by and do not interact with their

environment (all system input and output is internal)

• Open systems• Dynamically interact to their environments by taking in

inputs and transforming them into outputs that are distributed into their environments


MH-21

Exhibit MH-7


MH-22

The Contingency Approach

• Contingency Approach - sometimes called the situational approach

– There is no one universally applicable set of management principles (rules) by which to manage organizations.

– Organizations are individually different, face different situations (contingency variables), and require different ways of managing.


MH-23

Exhibit MH-8


MH-24

Terms to Know

• division of labor (or job specialization)

• Industrial Revolution• scientific management• therbligs• general administrative

theory• principles of management• bureaucracy

• quantitative approach• organizational behavior

(OB)• Hawthorne Studies• system• closed systems• open systems• contingency approach



Robbins Mgmt11 Ppt01a

Documents

prentice hall mh

management copyright

pearson education

practice of management

management philosophy

studies of management

principles of management

good management practice