manageme today and yesterday

8/12/2019 MaNAGEME TODAY AND YESTERDAY

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Copyright 2005 Prentice Hall, Inc. All rights reserved. 21

Management Today and Yesterday

Chapter # 2

Instructor:Anita Laila


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Historical Background of Management

Ancient ManagementEgypt (pyramids) and China (Great Wall)

Adam Smith

Published

The Wealth of Nationsin 1776

Advocated the division of labor (job specialization) to

increase the productivity of workers

Industrial Revolution

Substituted machine power for human labor


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Major Approaches to Management

Scientific Management General Administrative Theory

Quantitative Management

Organizational Behavior Systems Approach

Contingency Approach


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Scientific Management

Fredrick Winslow TaylorThe 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


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Scientific Management (contd)

Frank and Lillian GilbrethFocused on increasing worker productivity through

the reduction of wasted motion

Developed the microchronometer to time worker

motions and optimize performance.

How Do Todays Managers Use Scientific

Management?

Use time and motion studies to increase productivityHire the best qualified employees

Design incentive systems based on output


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General Administrative Theorists

Henri FayolBelieved that the practice of management was distinct

from other organizational functions

Developed fourteen principles of management that

applied to all organizational situations


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General Administrative Theorists

Max WeberDeveloped a theory of authority, structures and

relations based on an ideal type of organization(bureaucracy)

Bureaucracy is a form of organization having divisionof Labor, hierarchy, rules & regulations & impersonalrelationships


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Ideal Bureaucracy

Formal

Rules &Regulation

CareerOrientation

Impersonality

AuthorityHierarchy

Division ofLabor

A BureaucracyShould have


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Quantitative Approach

The use of quantitative techniques to improvedecision making


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Organizational Behavior

The study of actions (behavior) of people atwork


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Hawthorne Studies

A series of studies providing insight intoindividual & group studies.

Light Impact on productivity.


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The Systems Approach

System DefinedA set of interrelated and interdependent parts

arranged in a manner that produces a unified whole.

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


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Implications of the Systems Approach

Coordinate the work activities of various partsof the organization and ensure that all theinterdependent parts of the organization areworking together so that the organizational

goals can be achieved Decisions and actions taken in one area of the

organization will have an effect on the otherareas of the organization

Organizations are not self-contained andtherefore, must adapt to changes in theirexternal environment


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The Contingency Approach

Contingency Approach Defined

Also sometimes called the situational approach.

There is no one universally applicable set of

management principles (rules) by which to manageorganizations.

Organizations are individually different, face different

situations (contingency variables), and require

different ways of managing.

manageme today and yesterday

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