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Management Business Management
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Unit Objectives 1 Analyze the history of management 2 3 4 5
Define Management Analyze different levels of management Determine the skills of a manager Identify the functions of a manager
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What is Management? Management is the process of accomplishing the goals of an organization through the effective use of people and other resources.
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Businesses need to determine whether they are doing the right things and doing the right things well! Effectiveness: making the right decisions regarding what products and services to offer customers and how to produce and deliver them (quality) Efficiency: producing the needed goods or services quickly at low cost (increased output & productivity) Companies that provide products or services at the lowest cost while maintaining desired quality will succeed! Good managers focus on both!
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History of Management 1880 Scientific Management
1929 Taylorism 1932 Hawthorne Studies 1946 Organizational Development 1954 Hierarchy of Needs 1960 Theory X Theory Y 1978 Excellence 1990 Learning Organization 2000 Business Process Management
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1880 Scientific Management 1929 Taylorism
Frederick Taylor decides to time each and every worker at the Midvale Steel Company. His view of the future becomes highly accurate: In scientific management the managers were elevated while the workers' roles were negated. "Science, not rule of thumb," said Taylor. The decisions of supervisors, based upon experience and intuition, were no longer important. Employees were not allowed to have ideas of responsibility.
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MAJOR CONTRIBUTORS FREDERICK WINSLOW TAYLOR (1856-1915)
FRANK GILBERTH ( ) & LILLIAN GILBERTH( )
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Hence, term ‘Scientific Management’ evolved.
Taylor insisted that management itself would have to change and further, that the manner of change could be determined only by scientific study. Hence, term ‘Scientific Management’ evolved. Taylor suggested that decisions based on rules of thumb and tradition be replaced with precise procedures developed after careful study of individual situations Taylor insisted that management itself would have to change and further, that the manner of change could be determined only by scientific study
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SCIENTIFIC MANAGEMENT
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FRANK B GILBRETH & LILLIAN M GILBRETH
Followers of Taylor Followers of Taylor
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Frank B Gilbreth ( ) pioneered time and motion study and arrived at many of his management techniques independently of Taylor . He stressed efficiency and was known for his quest for “one best way” to do work. His work had great impact on medical surgery by drastically reducing the time patients spent on operating table. He invented a device – ‘MICRO CHRONOMETER’ in order to record workers movement and the amount of time spend to done a job
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On the basis of their study and experiments Frank give shape to 17 principles known as “Therblig”
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Did not acknowledge variance among individuals.
Criticism Did not appreciate the social context of work and higher needs of workers. Did not acknowledge variance among individuals. Tended to regard workers as uninformed and ignored their ideas for suggestions
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1932 Hawthorne studies Between 1924 and 1933, research teams from Harvard University conducted field studies on worker productivity at the Western Electric Hawthorne plant near Chicago The experiments initially concentrated on the relationship between productivity and work place lighting. To the researchers' surprise, both more and less light created higher productivity levels. Sociologist Mayo joined the experiments in early and realized that the workers chosen for the experiment were accorded higher status by their co- workers. The increased performance was due to their increased motivation.
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Henri Fayol(1841-1925) Henri Fayol
Father of Organizational Development Viewed management as a profession that can be trained and developed. First one to analyze the functions of management
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(B) Fayol described management as a scientific process built up of five immutable elements: Planning, Organizing, Commanding, Coordinating, Controlling
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Organizational Development
Henri Fayol contributed to this movement by developing the 14 management principles and management functions. These principals are still used today
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Fayol’s Principles Henri Fayol, developed a set of 14 principles:
Division of Labour: work should be divided among individuals based upon the skills of the workforce Job specialization leads to increased productivity 2. Authority and Responsibility: managers must be able to give orders and take responsibility of those orders 3. Discipline: employees must obey and respect the rules the govern the organization. 4. Scalar Chain: a clear chain from top to bottom of the firm 5. Centralization: the degree to which authority rests at the very top
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Fayol’s Principles 6. Unity of Direction: One plan of action to guide the organization. 7. Unity of Command: Employees should have only one boss. 8. Order: Each employee is put where they have the most value. 9. Initiative: Encourage innovation. 10. Equity: Treat all employees fairly in justice and respect.
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Fayol’s Principles 11. Remuneration of Personnel: The payment system contributes to success. 12. Stability of Tenure: Long-term employment is important. 13. General interest over individual interest: The organization takes precedence over the individual. 14. Esprit de corps: ‘Union is strength’- refers to harmony & mutual understanding among the members of an organization.
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CLASSICAL APPROACH SCIENTIFIC MANAGEMENT THEORY
FREDERICK W.TAYLOR ( ) - FATHER OF SCIENTIFIC MANAGEMENT ANALYSED MANAGEMENT SCIENTIFICALLY TO FIND OUT THE MOST EFFICENT WAY TO DO A JOB - “ONE BEST WAY” TO DO THE JOB. ORGANIZATIONAL DEVELOPMENT MANAGEMENT THEORY HENRI FAYOL ( ) - FATHER OF MODERN MANAGEMENT ANALYSED MANAGEMENT AS A UNIVERSAL PROCESS OF PLANNING,ORGANIZING, COMMANDING,COORDINATI -NG& CONTROLLING. ALSO INTRODUCED FOURTEEN PRINCIPLES OF MANAGEMENT.
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Taylor Vs. Fayol Taylor’s viewed management from the bottom up
Increasing productivity of the individual worker Fayol viewed management from the top down Creating guidelines for managing complex organizations
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Business Process Management BPM
Business process management (BPM) is a systematic approach to making an organization's workflow more effective, more efficient and more capable of adapting to an ever-changing environment. A business process is an activity or set of activities that will accomplish a specific organizational goal.
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Operational Employees
Management Basics Top Managers Middle Managers First Line Managers Operational Employees Managerial Levels
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Five Key Managerial Skills
Technical Proficiency in a specific activity Hard Skills Interpersonal Human Skills Conceptual See the organization as a total entity Diagnostic Investigate problems Political Effective to obtain power and prevent others from taking it away
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Conceptual Human Technical First Line Management Technical skills are most important for first line employees
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Technical Human Conceptual Top Management Conceptual skills, setting the strategic direction of the organization are most important to top management
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Resources used by Managers
Physical Resources Human Resources Financial Resources Information Resources
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Types of Managers Functional Managers- supervise the work of employees engaged in specialized activities, such as accounting, sales or information systems General Managers- responsible for the work of several different groups that perform a variety of functions.
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4 Functions of a Manager Planning Organizing Leading Controlling
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