Lecture 2 Management approaches and styles

Management

1. Management Approaches Irfan Ashiq Lecturer Govt. College Chunian [email protected] Lecture 2

2. Changing Notions Division of Labor 1776 Adam Smith The Wealth of Nations The breakdown of jobs into narrow and repetitive tasks Industrial Revolution Starting in Eighteenth century in Great Britain Crossed the Atlantic to America by the end of the Civil War. The advent of machine power, mass production, and efficient transportation

3. Major Approaches of Management

4. Scientific Management Frederick W. Taylor (a mechanical engineer) Principles of Scientific management (1911) One best way Work standards, right man at right place, old rule of thumb Scientific selection and training Heartily cooperation Division of work

5. General Administrative Approach Henri Fyol’s Management functions Planning, organizing, commanding, coordinating and controlling Focused on all level of management Based on personal experience during the job of Managing Director in a coal mining firm Develop 14 fundamental principles of management

6. Fayol’s 14 Principles Division of work Specialization increases output by making employees more efficient Authority Manager must be able to give orders and authority gives them this right. Discipline Employees must obey and respect the rules that govern the organization Unity of command Every employee should receive orders from only one boss

7. Cont … Unity of direction The organization should have a single plan of action to guide managers and workers. Subordination of individual interests to the general interest The interest of any one employee or group of employees should not take precedence over the interest of the organization as a whole Remuneration Worker must be paid a fair wage for their services. Centralization This term refers to the degree to which subordinates are involved in decision making

8. Cont … Scalar chain The line of authority from top management to the lowest ranks is the scalar chain. Order People and materials should be in right place at right time. Equity Manager should be kind and fair to their subordinates. Stability of tenure of personnel Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.

9. Cont … Initiative Employees who are allowed to originate and carry out plans will exert high level of effort. Esprit de corps Promoting team spirit will build harmony and unity within the organization

10. Bureaucratic Approach Max weber Was a German sociologist who studied organizational activities In the early 1900 developed a theory of authority structure and relations. Describe an ideal type of organization which he called a bureaucracy. A form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.

11. Cont … Division of labor Job breakdown into simple, routine and well defined tasks Authority hierarchy Positions organized in a hierarchy with a clear chain of command Formal selection People selected for jobs based on technical qualifications

12. Cont … Formal rules and regulations System of written rules and standard operating procedures. Impersonality Uniform application of rules and controls, not according to personalities. Career orientation Managers are career professional, not owners of units they manage.

13. How todays’ managers use general administrative theories of management ?

14. Quantitative Approach Mathematical and statistical techniques used to solve the military problems After world war II these techniques used to industrial management by former military officers The use of quantitative techniques to improve decision making It contributes to directly management decision making in the areas of planning and control. For instance a manager make budgeting, scheduling, quality control and take similar decisions.

15. Key elements Environment scanning The screening of large amount of information to anticipate and interpret changes in the environment. Competitor intelligence Activity that seeks to identify who competitors are, what they are doing, and how their actions affect the organization

16. Cont … Forecasting Forecasting allows the managers to predict future events effectively and in a timely manner. Quantitative forecasting Forecasting that applies a set of mathematical rules to a series of past data to predict outcomes. Qualitative forecasting Forecasting that uses the judgment and opinions of knowledgeable individuals to predict outcomes.

17. Cont … Benchmarking The search for the best practices among competitors or non-competitors that lead to their superior performance. Steps in benchmarking Form a benchmarking planning team Gather internal and external data Analyze data to identify performance gaps Prepare and implement action plan

18. Cont … Budgeting A numerical plan for allocating resources to specific activities. Suggestions Be flexible Goals should drive budgets Coordinate budgeting throughout the organization Use budgeting software Remember that budgets are tools Remember that profits result from smart management, not because you budgeted for them

19. Cont … Scheduling Detailing what activities have to be done, the order in which they are to be completed, who is to do each, and when they are to be completed.