1. Principles of Management Session. 2 Management Yesterday & Today
USMAN SADIQ (Ph.D. Scholar)

2. Our expectations?
Hard work
Honesty
Responsible attitude

3. AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:
Historical Background Of Management.
Classical Approach.
Quantitative Approach.
Behavioral Approach.
Contingency/Contemporary Approach

4. Major Approaches Of Management
Historical
Background
Contemporary
Approach
Classical
Behavioral
Quantitative
Early Examples of
Management
Adam Smith
Industrial
Revolution
Early
Advocate
Hawthorn
Studies
Scientific
Management
System
Approach
General
Administration
Contingency
Approach
Organization
Behavior

5. Industrial Revolution1-
Historical
Background
Ancient Management
Adam Smith
Industrial Revolution

6. Industrial Revolution
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

7. Scientific Management2-
Classical
Approach
Scientific Management
General Administrative Theory
The first studies of management, which emphasized rationality and making organizations and workers as efficient as possible.

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

9. 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

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

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

13. Fayal's 14 Principles of Management
Developed fourteen principles of management that applied to all organizational situations.
Division of labor.
Authority.
Discipline.
Unity of command.
Unity of direction.
Subordination of individual interests to the general interests.
Remuneration.
Centralization.
Scalar chain.
Order.
Equity.
Stability.
Initiative.
Esprit de corps.

14. Max Weber.
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.

15. Weber’s Ideal Bureaucracy

16. 3- 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 3-

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

18. What is Quality Management?
Intense focus on the customer.
Concern for continual improvement
Process-focused.
Improvement in the quality of everything.
Accurate measurement.
Empowerment of employees.

19. Organization Behavior
Behavioral
Approach
Early Advocates
Hawthorne studies
Organization Behavior 4-

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

21. Early Advocates of OB

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

23. 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.

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

25. Contemporary
Approach
System Approach
Contingency Approach 5-

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

27. 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.

28. The Organization as an Open System

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

30. 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.

31. THANK YOU