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The construction of a single pyramid occupied more than 100,000 workers for 20 years.
Who told each worker what to do?
Who ensured that there would be enough stones at the site to keep workers busy?
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Describe some early management examples
Explain the various theories in the classical approach
Discuss the development and uses of the behavioral approach
Describe the quantitative approach
Explain the various theories in the contemporary approach
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4. Historical Background of Management
Ancient Management
Egypt (pyramids) and China (Great Wall)
Venetians (floating warship assembly lines)
Adam Smith The Wealth of Nations in 1776
Industrial Revolution
Substituted machine power for human labor
Created large organizations in need of management
He ONES WHO ARE INTERESTED IN ADAM SMITH PLEASE READ THIS VERY BRIEF SUMMARY ABOUT «INVISIBLE HAND»
Adam Smith: Division of labor. Breakdown of works into small and repititive task. He told that if you breka down the prodction into pieces 10 individual can produce pins a day. But if you let each one to produce a whole part you can not exceed 10 pins a day for person.
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6. Exhibit MH-1: Major Approaches to Management
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7. Scientific Management
Fredrick Winslow Taylor
The “father” of scientific management
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
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Exhibit MH-2
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10. General Administrative Theory
Henri Fayol
Believed that the practice of management was distinct from other organizational functions
Developed 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
HENRI FAYOL
Fayol's 14 Principles of Management
Fayol's principles are listed below:
Division of Work – When employees are specialized, output can increase because they become increasingly skilled and efficient.
Authority – Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility.
Discipline – Discipline must be upheld in organizations, but methods for doing so can vary.
Unity of Command – Employees should have only one direct supervisor.
Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated.
Subordination of Individual Interests to the General Interest – The interests of one employee should not be allowed to become more important than those of the group. This includes managers.
Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.
Centralization – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.
Scalar Chain – Employees should be aware of where they stand in the organization's hierarchy, or chain of command.
Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.
Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate.
Stability of Tenure of Personnel – Managers should strive to minimize employee turnover. Personnel planning should be a priority.
Initiative – Employees should be given the necessary level of freedom to create and carry out plans.
Esprit de Corps – Organizations should strive to promote team spirit and unity.
Fayol's Six Functions of Management
Fayol's six primary functions of management, which go hand in hand with the Principles, are as follows:
Forecasting.
Planning.
Organizing.
Commanding.
Coordinating.
Controlling.
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Fayol's Six Functions of Management
Fayol's six primary functions of management, which go hand in hand with the Principles, are as follows:
Forecasting.
Planning.
Organizing.
Commanding.
Coordinating.
Controlling.
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Exhibit MH-3
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The organization defined by Weber:
Division of Labor
A clearly defined hierarchy
Detailed rules and regulations
Impersonal relationships
Documentation
Career oriantation
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Exhibit MH-4
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15. 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
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16. 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
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The Hawthorne Studies
A series of productivity experiments conducted at Western Electric from 1924 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.
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Exhibit MH-6
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The Systems Approach
System - a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.
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
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Exhibit MH-7
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21. The Contingency Approach
Contingency Approach - 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.
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Exhibit MH-8
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Terms to Know
division of labor (or job specialization)
Industrial Revolution
scientific management
therbligs
general administrative theory
principles of management
bureaucracy
quantitative approach
organizational behavior (OB)
Hawthorne Studies
system
closed systems
open systems
contingency approach
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