chapter 2 Intro to the management .pptx

intro to management

1. Ch: 2
Management yesterday and today

2. 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

3. Development of Major Management Theories

4. Major Approaches to Management
•Scientific Management
•General Administrative Theory
•Quantitative Management
•Organizational Behavior
•Systems Approach
•Contingency Approach

5. 1)Scientific Management
1. 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.

6. 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.

7. 2. Frank and Lillian Gilbreth
Focused on increasing worker productivity through
the reduction of wasted motion
Invented a device “microchronometer” to record time
worker motions and optimize work performance

8. 2) General Administrative Theory
1.Henri Fayol
Believed that the practice of management was distinct
from other organizational functions(accounting,
production, distribution etc.)
Developed fourteen principles of management that
applied to all organizational situations

9. 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.

10. 2. Max Weber
•Developed a theory of authority
based on an ideal type of
organization (bureaucracy)
•Characterized rationality,
predictability, division of labor, a
clearly defined hierarchy, detailed
rules & regulations, Impersonality
and authoritarianism

11. Weber’s Ideal Bureaucracy

12. Drawbacks
•TheBureaucraticManagementTheoryGivenByMaxWeber
HasHighlyRigidAndStrictRegulationsToFollowForThe
EmployeesAndTheManagers
•InformalGroupsSuchAsContractorsPlayASignificantRole
InMostBusinessOrganizations,ButTheyAren’tImportant
InMaxWeber’sManagementTheory
•TheWeberianModelOfBureaucracyRequiresATonOf
PaperworkWhichContributesToAHugeWasteOfMoney,
EffortAndTime
•ALargeNumberOfRulesAndFormalitiesTendToDelay
TheDecision-MakingProcessAnd,Thereby,Important
BusinessTasks

13. •The Bureaucratic Structure Usually Suits Government
Organizations, But Businesses Need Quick Decision-Making,
Which Is Not ACharacteristic Of Max Weber’s Bureaucracy.
That’s Why It Is Not Beneficial For Corporate Organizations
•Human Resource Management Has Limited Scope In This
Type Of Organization Structure
•Max Weber’s BureaucracyOnly Focuses On The Technical
Skills Of Workers And Neglects The Employee’s Dedication,
Hard Work And Commitment
•In A Bureaucratic Structure, It Can Get Difficult For
Employees And Managers To Communicate And Coordinate
Among Themselves

14. 3)Quantitative Approach to Management
Use of quantitative techniques to improve decision
making.
Also called operationsresearch or management
science
Evolved from mathematical and statistical methods
developed to solve WWII military logistics and quality
control problems
It involves application of Statistics, optimization
models, information models, and computer
simulations
Help managers for making decisions in the areas of
planning & control.

15. Operations Management:
•In operations management, people use
quantitative techniques of forecasting, inventory
analysis, statistical quality control methods,
networking models etc.
•In areas such as inventory management,
production planning, designing the production
process, purchasing raw materials, storing and
selling the final products and similar areas in
manufacturing units.

16. Management Information System (MIS):
•Large amount of information is quickly
processed (conversion of raw data into useful
information) to make useful business decisions.

18. Assumptions of Quantitative Theory:
1.Organizations are decision-making units which make
efficient decisions through mathematical models.
2.Business problems can be solved through joint efforts
of a team that consists of experts from the fields of
mathematics, statistics, accountancy, engineering etc.
3.Business problems can be expressed in mathematical
models where relevant factors can be quantified in
numerical terms. Management is seen as
mathematical process expressed in terms of
mathematical symbols and relationships.

19. Draw backs and merits:
•Only control and
forecasting wise
helpful
•Interpretational
knowledge should be
accurate
•Time efficiency
•Cost efficiency
•Real reasons in
numbers
•Cost and benefit
analysis

20. 4)Understanding Organizational
Behavior
•Organizational Behavior (OB)
The field of study concerned with actions of people at
work.
people are the most important asset of an
organization

21. A series of studies during 1920s & 1930s that provided
new insights into individual and group behavior.
Research conclusion
Social norms, group standards and attitudes more
strongly influence individual output and work behavior
than do monetary incentives.
The Hawthorne Studies

22. 5) The Systems Approach
•System:
A set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
•2 Types of Systems
Closed systems
Are not influenced by and do not interact with their
environment.
Open systems
Dynamically interact to their environments by taking in inputs
and transforming them into outputs that are distributed into
their environments.

23. six main components of a system.
The components are:
1.Sub-System
2.Synergy
3.Open and Closed Systems
4.System Boundary
5.Flow
6.Feedback.

24. The Organization as an Open System

25. System approach & Managers
•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, they rely
on their environment and, therefore, must adapt
to changes in their external environment.

26. 6) The Contingency Approach
Also sometimes called the situational approach.
Organizations are individually different, face different
situations (contingency variables), and require
different ways of managing.
There is no one universally applicable set of
management principles (rules) by which to manage
organizations.

27. Popular Contingency Variables
•Organization size
•As size increases, so do the problems of coordination..
•Environmental uncertainty
•What works best in a stable and predictable environment
may be totally inappropriate in a rapidly changing and
unpredictable environment.

28. Current Trends and Issues
•Globalization
•Ethics
•Workforce Diversity
•Entrepreneurship
•E-business
•Knowledge Management
•Learning Organizations
•Quality Management

29. Current Trends and Issues (cont’d)
•Globalization
Management in international organizations
Political and cultural challenges of operating in a
global market
•Ethics
Increased emphasis on ethics education in college
curriculums
Increased creation and use of codes of ethics by
businesses

30. •Workforce Diversity
Increasing heterogeneity in the workforce
More gender, minority, ethnic, and other forms of diversity in
employees
Aging workforce
Older employees who work longer and do not retire
The increased costs of public and private benefits for older
workers
An increasing demand for products and services related to
aging.

31. •Entrepreneurship
The process of starting new businesses, generally in
response to opportunities.
•Entrepreneurship process
Finding opportunities
Innovation in products, services, or business methods
Desire for continual growth of the organization