Principles Of Management 0333-8871727 00923338871727 +923338871727

1. Principles of Management
Management
Yesterday &
Today
CHAPTER-2

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

3. Organization
Behavior
Scientific
Management
General
Administration
System
Approach
Contingency
Approach
Major Approaches Of Management

5.  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

6. The first studies of management, which emphasized
rationality and making organizations and workers as
efficient as possible.

7. Classical
Approach
Scientific
Management
An approach that involves using the scientific
method to determine the “One Best Way” for a job
to be done.

8.  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

9.  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

10. General Administrative
Theory
An Approach to management that focuses on
describing what mangers do and what constitutes
good management practice.

11. Believed that the practice of management was distinct
from other organizational functions like Finance,
Production, Distribution, and other typical business
functions.
Henri Fayol

12. 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.

13.  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.

14. Weber’s Ideal Bureaucracy

16. Quality Management
A philosophy of management driven by continual
improvement in the quality of work processes and
responding to customer needs and expectations

17. oIntense focus on the customer.
oConcern for continual improvement
oProcess-focused.
oImprovement in the quality of everything.
oAccurate measurement.
oEmpowerment of employees.
What is Quality Management?

19. Early Advocates
The study of the actions of people at
work; people are the most important
asset of an organization

20. Early Advocates of OBEarly Advocates of OB

21. Hawthorne studies
A series of studies during the 1920s and 1930s that
provided new insights into individual and group
behavior

22. • Experimental findingsExperimental findings
 Productivity unexpectedly increased under imposed adverseProductivity unexpectedly increased under imposed adverse
working conditions.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 stronglySocial norms, group standards and attitudes more strongly
influence individual output and work behavior than doinfluence individual output and work behavior than do
monetary incentives.monetary incentives.
A series of productivity experiments conducted atA series of productivity experiments conducted at
Western Electric from 1927 to 1932.Western Electric from 1927 to 1932.

23. The field of study concerned with the actions
(behavior) of people at work.
Organization Behavior

25. A set of interrelated and interdependent parts arranged
in a manner that produces a unified whole.
System Approach

26. Basic Types of Systems

27. The Organization as an Open System

28. A management approach which says that organization
are different, face different situations (contingencies),
and require different ways of managing
Contingency Approach

29. 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.