session 2 history 13-14 2 sem.ppt

8/12/2019 session 2 history 13-14 2 sem.ppt

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Principles of Management


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To Appreciate our Subject:

To appreciate what Management

is today, we need to look back at

its past...


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Exhibit 2.1

Development of Major ManagementTheories


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Historical Background Of

Management Significant Pre-Twentieth-Century Events

Wealth of Nations-Adam Smith

division of labor- breakdown of jobs into narrowand repetitive tasks increased productivity

Hierarchical control and managementmanagers think and workers work

Industrial Revolution

substitution of machine power for human power

large organizations required formal management


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Scientific Management

F.W. Taylor- Principles of ScientificManagement use of scientific methods to define the one best way for a job

to be done

perspective of improving the productivity and efficiency ofmanual workers

Having a standardized method of doing the job.

Providing an economic incentive to the worker.

Economic Man
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4 Principles of Scientific

Management (1911) Develop a science

of work

Divide andstandardize jobs

Train workers & $$$

Support workers byplanning their work

E.g. assembly-line
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General Administrative Theorists

Henri Fayol

concerned with making the overall

organization more effective

developed theories of what constitutedgood management practice

proposed a universal set of managementfunctions: plan, Organize, Control, Lead

publishedprinciples of management


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Exhibit 2.3

Fayols 14 Principles of Management

1. Division of work.

2. Authority.

3. Discipline.

4. Unity of command.

5. Unity of direction.

6. Subordination of

individual interestto the interests of

the organization.

7. Remuneration.

8. Centralization.

9. Scalar chain.

10. Order.

11. Equity.

12. Stability of tenure

of personnel.

13. Initiative.

14. Esprit de corps.


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General Administrative Theorists

(cont.) Max Weber

developed a theory of authority

structures and relations Bureaucracy- ideal type of

organization

division of labor clearly defined hierarchy

detailed rules and regulations

impersonal relationships


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EXHIBIT 2.4: WEBERS IDEAL

BUREAUCRACY

2-12


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Quantitative Approach To

Management Operations Research (Management Science)

use of quantitative techniques to improve

decision making applications of statistics

optimization models

computer simulations of management

activities Linear programming- improves resource

allocation decisions

Critical-path scheduling analysis- improves

work scheduling


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Behavioral School

study of the actions of people at work

early advocates

late 1800s and early 1900sbelieved that people were the most

important asset of the organization

ideas provided the basis for a variety ofhuman resource management programs

employee selection

employee motivation


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Hawthorne Studies

started in 1924 at Western Electric Company

began with illumination studies

intensity of illumination not related toproductivity

Elton Mayo- studies of job design

revealed the importance of social norms asdeterminants of individual work behavior

changed the dominant view that employees were

no different from any other machines

Organizational Behavior (cont.)


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Hawthorne Studies


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The Systems ApproachSystem Defined

A set of interrelated and interdependent partsarranged in a manner that produces a unified whole.

Basic Types of Systems Closed systems

Are not influenced by and do not interact with theirenvironment (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 intotheir environments.


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ABC Organization

Organizational task

100 marbles (20 are

red) Paddle with 50 holes

Performance indicatorminimum red marblescollected

Hire and fire decisionbased on

performance


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Performance Results

Day1 Day2 Day3 Day4 Total

Mary 9 8 16 6 39

Bruce 7 8 14 12 41

Mike 12 12 7 5 36

Sue 7 8 13 10 38

Tony 8 7 5 13 33Me 9 10 6 6 31

Total 52 53 61 52 218


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Performance Results

Day1 Day2 Day3 Day4 Total

Mary 9 8 16 6 39 Fired

Bruce 7 8 14 12 41 Fired

Mike 12 12 7 5 36

Sue 7 8 13 10 38 Fired

Tony 8 7 5 13 33Me 9 10 6 6 31

Total 52 53 61 52 218


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Organizations Process

Order Entry

Credit Checking

Inventory Allocation

Packing

Shipping


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Exhibit 2.6

The Organization as an OpenSystem


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Implications of the Systems

ApproachCoordination of the organizations parts isessential for proper functioning of the

entire organization.The key to performance is to have goodprocess.

Organizations are not self-contained and,therefore, must adapt to changes in theirexternal environment.


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The Contingency Approach

Contingency Approach Defined

Also sometimes called the situational approach.

There is no one universally applicable set ofmanagement principles (rules) by which tomanage organizations.

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


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Exhibit 2.7

Popular Contingency Variables

Organization size

Routineness of task technology

Environmental uncertainty Individual differences

11

V.S.


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Total Quality Management


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US Companies World Market Share

0

1020

30

40

50

6070

80

90

100

Cameras Copiers VTRs Autos TVs

1970

1985


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Xerox Return of Assets (ROA)

26

3

17

73 8479

Business

Success

Crisis of

SurvivalOperations

Deployment

Years

%


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Rule 1:Quality, Quality, Quality

Rule 2:System, System, System

Rule 3:Improvement,Improvement, Improvement

Rule 4:Right the First Time

Rule 5:Taking Full Responsibility


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Management Paradigm Shift


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Management Paradigm Shift

From professional standards to meetingcustomers expectation

Individual to systems and processes

Department to multi-disciplinary team

Reactive to pro-active CQI

Experience to clinical protocol

Supervisor oriented to empowerment


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And where do we go fromhere?


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The drivers of change Technology

Leverage capability

Change the nature of work and relations

Globalization Increase competition Increase choice/combination of resources & customers

Deregulation and democratization Increase customer choice

Politicize of business & management Rights of employees

Rights of customers and citizens


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Whatre changed in management practices

Organization structure - flatter, smaller, team andnetworked

Recruitment - Staff recruited for contribution to thecompany rather than doing a job

DevelopmentSpecialization AND transferable skills ANDcontinuous learning are required

MotivationFocus on intrinsic motivation & developmentof competencies

Supervision - Staff as self-monitoring professionals, Bossas coach & resource person

Careers - Spiral & boundaryless

The success formula = (#) * 2 ($) * 3 (output) !

New mindsetfor work and management


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How to manage ?

Planning

Organizing

Leading

Controlling


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The Great Debate! Is Management an

Art ? Is Management a

Science?


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session 2 history 13-14 2 sem.ppt

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