Existing System study reveals that all the booking was done manually on registers, which was very tedious and error prone job. Searching and report generation was also not possible in the existing system. Also the work of Institute was manually maintained. There was register or file system in the Institute. Present mode of working is based on manual system in which the all the information is first received and than entered in the register. It is very difficult job and time consuming also. Moreover, the existing system is also dependent on employees, if the employees are absent; it leads to problem and affects the business performance.

1. 3/02/2022
Lecture 2
PRINCIPLES OF
MANAGEMENT
Chapter Two: Management Yesterday and
Today

2. Synopsis
◻ Historical Background of Management
◻ Scientific Management
◻ General Administrative Theory
◻ Quantitative Approach
◻ Understanding Organizational Behavior
◻ The Systems Approach
◻ The Contingency Approach

3. Historical Background of Management
◻ Ancient Management
Egypt (pyramids) and 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

4. Exhibit 2–1 Development of Major Management Theories

5. Major Approaches to Management
◻ Scientific Management
◻ General Administrative Theory
◻ Quantitative Management
◻ Organizational Behavior
◻ Systems Approach
◻ Contingency Approach

6. Classical Theory Of Management
◻ Classical management theory is a branch of
management theory which evolved around the 19th
century.
◻ emphasized rationality and making organizations
and workers as efficient as possible.
◻ It was developed during the industrial revolution
when problems related to factory systems began, to
recognize the role that management plays in an
organization particularly focusing on the efficiency
of the work process.

7. Scientific Management
◻ Fredrick Winslow Taylor
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.

8. The main things Taylor noticed for
inefficiency
◻ The lack of standard tools and techniques
◻ There is no match between skill and job
◻ No motivation from the management

9. Exhibit 2–2 Taylor’s Four Principles of Management
1. Develop a science for each element of an individual’s work,
which will replace the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop the
worker.
3. Heartily cooperate with the workers so as to ensure that all
work is done in accordance with the principles of the
science that has been developed.
4. Divide work and responsibility almost equally between
management and workers. Management takes over all work
for which it is better fitted than the workers.

10. Scientific Management (cont’d)
◻ Frank and Lillian Gilbreth
Focused on increasing worker productivity through the
reduction of wasted motion
Developed the micro chronometer to time worker
motions and optimize work 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

11. Comments on scientific
management
◻ Benefits
• Increased productivity
• Rational approach – applies measurement
• Incentive payments – based on results
◻ Weaknesses
• Rigidity – reduced workers’ role
• Work fragmentation
• Taylor was over-optimistic on acceptance by both
employees and management
• Wages were determined scientifically - no social
considerations

12. General Administrative Theory
General administrative theory focused more on what
managers do and what constituted good management
practice.

13. General Administrative Theory
◻ Henri Fayol
Believed that the practice of management was distinct
from other organizational functions
Developed fourteen principles of management that
applied to all organizational situations
◻ Max Weber
Developed a theory of authority based on an ideal type
of organization (bureaucracy)
■ Emphasized rationality, predictability, impersonality,
technical competence, and authoritarianism

14. Exhibit 2–3 Fayol’s 14 Principles of Management
1. Division of work.
2. Authority.
3. Discipline.
4. Unity of command.
5. Unity of direction.
6. Subordination of
individual interests to
the general interest.
7. Remuneration.
8. Centralization.
9. Scalar chain.
10. Order.
11. Equity.
12. Stability of tenure of
personnel.
13. Initiative.
14. Esprit de corps.

15. Bureaucracy main features
◻ A continuous organization of functions bound by
rules
◻ Specified spheres of competence
◻ A hierarchical arrangement of offices (jobs)
◻ Appointment based on technical competence
◻ Separation of officials from ownership
◻ Formulated rules, decisions & actions recorded in
writing

16. Bureaucracy weaknesses
◻ Rules tend to be more important than
efficiency
◻ Rigid behavior
◻ Prevents search for alternatives because of
programmed decision making
◻ Damages relationships with clients and
workers
◻ Difficult for change and adaptation

17. Exhibit 2–4 Weber’s Ideal Bureaucracy

18. How today’s managers use general
administrative theory
◻ a bureaucratic structure hinders individual
employees’ creativity and limits an
organization’s ability to respond quickly to an
increasingly dynamic environment.
◻ in flexible organizations of creative
professionals—such as Microsoft, Samsung,
General Electric, or Cisco Systems—some
bureaucratic mechanisms are necessary to
ensure that resources are used efficiently and
effectively.

19. Quantitative Approach to Management
◻ Quantitative Approach
Also called operations research or management
science
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 simulations

20. How today’s managers use the
quantitative approach
◻ The quantitative approach contributes directly to
management decision making in the areas of
planning and control.
◻ For instance, when managers make budgeting,
queuing, scheduling, quality control, and similar
decisions, they typically rely on quantitative
techniques.

21. Total quality management
Total quality management is a management philosophy devoted
to continual improvement and responding to customer needs and
expectations.

22. Customer
◻ The term customer includes anyone who interacts
with the organization’s product or services
internally or externally.
◻ It encompasses employees and suppliers as well as
the people who purchase the organization’s goods
or services.

23. What Is Quality Management?
◻ Intense focus on the customer
The customer includes outsiders who buy the organization’s products or
services 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. “Very good” is
not good enough. Quality can always be improved.
◻ Process focused
Quality management focuses on work processes as the quality of goods and
services is continually improved.

24. What Is Quality Management?
◻ Improvement in the quality of everything the
organization does.
This relates to the final product, how the organization handles deliveries,
how rapidly it responds to complaints, how politely the phones are answered,
and the like.
◻ Accurate measurement
Quality management uses statistical techniques to measure every critical
variable in the organization’s operations. These are compared against
standards to identify problems, trace them to their roots, and eliminate their
causes.
◻ 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 and solving problems.

25. Behavioral Approach
The field of study that researches the actions (behavior) of
people at work is called organizational behavior (OB).

26. Understanding 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

27. Exhibit 2–5 Early Advocates of OB

28. •A series of productivity experiments conducted at
Western Electric from 1927 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.
The Hawthorne Studies

29. Contemporary Approaches
◻ Most of these earlier approaches focused on
managers concerns inside the organization.
◻ Starting in the 1960s, management researchers
began to look at what was happening in the
external environment outside the boundaries of
the organization.
◻ Two contemporary management
perspectives—systems and contingency—are
part of this approach.

30. The Systems Approach
◻ System Defined
A set of interrelated and interdependent parts arranged
in a manner that produces a unified whole.
◻ Basic Types of Systems
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.

31. Exhibit 2–6 The Organization as an Open System

32. Implications of the Systems Approach
◻ Coordination of the organization’s parts is essential
for proper functioning of the entire organization.
◻ Decisions and actions taken in one area of the
organization will have an effect in other areas of
the organization.
◻ Organizations are not self-contained and, therefore,
must adapt to changes in their external
environment.

33. The Contingency Approach
◻ Contingency Approach Defined
Also 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.
A good way to describe contingency is “if, then.”

34. Exhibit 2–7 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.