lecture managment)
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Introduction to Management
Course Instructor ::
2,32,3
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Learning ObjectivesLearning Objectives
Historical Background of ManagementHistorical Background of Management
Explain why studying management history is important.Explain why studying management history is important.
Describe some early evidences of management practice.Describe some early evidences of management practice.
Scientific ManagementScientific Management
Describe the important contributions made by FredrickDescribe the important contributions made by Fredrick
W. Taylor and Frank and LillianW. Taylor and Frank and Lillian GilbrethGilbreth..
Explain how todayExplain how today¶¶s managers use scientifics managers use scientific
management.management.
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General Administrative TheoryGeneral Administrative Theory
Discuss FayolDiscuss Fayol¶¶s contributions to management theory.s contributions to management theory.
Describe Max Weber Describe Max Weber ¶¶s contribution to managements contribution to management
theory.theory.
Explain how todayExplain how today¶¶s managers use general administratives managers use general administrative
theory.theory.
Quantitative ApproachQuantitative Approach
Explain what the quantitative approach has contributed toExplain what the quantitative approach has contributed tothe field of management.the field of management.
Discuss how todayDiscuss how today¶¶s managers use the quantitatives managers use the quantitative
approach.approach.
Learning ObjectivesLearning Objectives
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Toward Understanding Organizational Behavior Toward Understanding Organizational Behavior
Describe the contributions of the early advocates of OB.Describe the contributions of the early advocates of OB.
Explain the contributions of the Hawthorne Studies to theExplain the contributions of the Hawthorne Studies to the
field of management.field of management.
Discuss how todayDiscuss how today¶¶s managers use the behaviorals managers use the behavioral
approach.approach.
The Systems ApproachThe Systems Approach
Describe an organization using the systems approach.Describe an organization using the systems approach.
Discuss how the systems approach helps usDiscuss how the systems approach helps us
management.management.
Learning ObjectivesLearning Objectives
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The Contingency ApproachThe Contingency Approach
Explain how the contingency approach differs from theExplain how the contingency approach differs from the
early theories of management.early theories of management.
Discuss how the contingency approach helps usDiscuss how the contingency approach helps usunderstand management.understand management.
Current Issues and TrendsCurrent Issues and Trends
Explain why we need to look at the current trends andExplain why we need to look at the current trends and
issues facing managers.issues facing managers. Describe the current trends and issues facing managers.Describe the current trends and issues facing managers.
Learning ObjectivesLearning Objectives
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Historical Background of ManagementHistorical Background of Management
Ancient Management Ancient ManagementEgypt (pyramids) and China (Great Wall)Egypt (pyramids) and China (Great Wall)
Venetians (floating warship assembly lines)Venetians (floating warship assembly lines)
Adam Smith Adam Smith
PublishedPublished ³ ³ The Wealth of NationsThe Wealth of Nations´́ in 1776in 1776 Advocated the division of labor (job specialization) to increase Advocated the division of labor (job specialization) to increase
the productivity of workersthe productivity of workers
Industrial RevolutionIndustrial Revolution
Substituted machine power for human labor Substituted machine power for human labor Created large organizations in need of managementCreated large organizations in need of management
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Exhibit 2Exhibit 2 ± ± 11 Development of Major Management TheoriesDevelopment of Major Management Theories
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Major Approaches to ManagementMajor Approaches to Management
Scientific ManagementScientific Management General Administrative TheoryGeneral Administrative Theory
Quantitative ManagementQuantitative Management
Organizational Behavior Organizational Behavior
Systems ApproachSystems Approach
Contingency ApproachContingency Approach
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Scientific ManagementScientific Management
Fredrick Winslow Taylor Fredrick Winslow Taylor TheThe ³³father father ́́ of scientific managementof scientific management
PublishedPublished Pr inciples of Scientific Management Pr inciples of Scientific Management (1911)(1911)
The theory of scientific managementThe theory of scientific management
± ± Using scientific methods to define theUsing scientific methods to define the ³³one best wayone best way´́ for afor a
job to be done: job to be done:
Putting the right person on the job with the correct toolsPutting the right person on the job with the correct tools
and equipment.and equipment.
Having a standardized method of doing the job.Having a standardized method of doing the job. Providing an economic incentive to the worker.Providing an economic incentive to the worker.
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Exhibit 2Exhibit 2 ± ± 22 Taylor Taylor ¶¶s Four Principles of Managements Four Principles of Management
1. Develop a science for each element of an individual¶s work,
which will replace the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop the
worker.
3. Heartily cooperate with the workers so as to ensure that allwork is done in accordance with the principles of the science
that has been developed.
4. Divide work and responsibility almost equally between
management and workers. Management takes over all work
for which it is better fitted than the workers. separateplanning from operation
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Techniques given byTechniques given by taylor taylor
Functional foremanshipFunctional foremanship Standardization of workStandardization of work
Simplification of workSimplification of work
Fatigue studyFatigue study
Method studyMethod study
Time studyTime study
Motion studyMotion study
Differential wage systemDifferential wage system
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Contributions byContributions by chester chester bernardbernard
Concept of organizationConcept of organization ± ± Formal, informal organizationFormal, informal organization
Elements of organizationElements of organization²² A) functionalism/ A) functionalism/ departmentationdepartmentation
B)effective incentivesB)effective incentives
C)system of power C)system of power
D)logical decision makingD)logical decision making
Authority Authority
MotivationMotivation Opportunity of power Opportunity of power
Pleasant org.Pleasant org.
participationparticipation
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General Administrative TheoryGeneral Administrative Theory
HenriHenri FayolFayol
Believed that the practice of management was distinctBelieved that the practice of management was distinct
from other organizational functionsfrom other organizational functions
Developed fourteen principles of management thatDeveloped fourteen principles of management that
applied to all organizational situationsapplied to all organizational situations
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HenriHenri FayolFayol contributionscontributions
Identify & classify business activitiesIdentify & classify business activities
IdentifyIdentify mngtmngt. As a separate set of skills. As a separate set of skills ClassifyClassify mngtmngt. Functions. Functions Forecasting & planningForecasting & planning
OrganizingOrganizing
CommandingCommanding
CoCo--ordinatingordinating
controllingcontrolling
Develop universal principlesDevelop universal principles
Emphasize managerial qualitiesEmphasize managerial qualities
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Exhibit 2Exhibit 2 ± ± 33 FayolFayol¶¶s 14 Principles of Managements 14 Principles of Management
1.1. Division of work.Division of work.
2.2. Authority.Authority.
3.3. Discipline.Discipline.
4.4. Unity of command.Unity of command.
5.5. Unity of direction.Unity of direction.
6.6. Subordination of Subordination of
individual interestsindividual intereststo the generalto the general
interest.interest.
7.7. Remuneration.Remuneration.
8.8. Centralization.Centralization.
9.9. Scalar chain.Scalar chain.
10.10. Order.Order.
11.11. Equity.Equity.
12.12. Stability of tenureStability of tenure
of personnel.of personnel.13.13. Initiative.Initiative.
14.14. Esprit de corps.Esprit de corps.
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Frank B andFrank B and LilianLilian MM GilbrethGilbreth
Science of motion studyScience of motion study µSystems Management¶µSystems Management¶ ± ± prescribed way of prescribed way of
doing things down to the last detail: FB referreddoing things down to the last detail: FB referredto the, ³one best way.´to the, ³one best way.´
FB set down his µField System¶ for his managersFB set down his µField System¶ for his managers ± ± rules and procedures applicable to all sitesrules and procedures applicable to all sites
Main problem was to ensure performance andMain problem was to ensure performance andcontrol at a distancecontrol at a distance
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Frank B andFrank B and LilianLilian MM GilbrethGilbreth
Motion study articles in American journalMotion study articles in American journalIndustrial Engineering in 1911Industrial Engineering in 1911
1.1. Reduce present practice to writingReduce present practice to writing
2.2. Enumerate motions usedEnumerate motions used
3.3. Enumerate variables which affect each motionEnumerate variables which affect each motion
4.4. Reduce best practice to writingReduce best practice to writing
5.5. Enumerate motions usedEnumerate motions used
6.6. Enumerate variables which affect each motionEnumerate variables which affect each motion
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Quantitative Approach to ManagementQuantitative Approach to Management
Quantitative ApproachQuantitative Approach Also called Also called oper ations r esear choper ations r esear ch or or management management
sciencescience
Evolved from mathematical and statistical methodsEvolved from mathematical and statistical methods
developed to solve WWII military logistics and qualitydeveloped to solve WWII military logistics and qualitycontrol problemscontrol problems
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Understanding Organizational Behavior Understanding Organizational Behavior
Organizational Behavior (OB)Organizational Behavior (OB)The study of the actions of people at work; people areThe study of the actions of people at work; people are
the most important asset of an organizationthe most important asset of an organization
Early OB AdvocatesEarly OB Advocates
Robert OwenRobert Owen
Hugo MunsterbergHugo Munsterberg
Mary Parker FollettMary Parker Follett
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Exhibit 2Exhibit 2 ± ± 55 Early Advocates of OBEarly Advocates of OB
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A series of productivity experiments conducted A series of productivity experiments conductedat Western Electric from 1927 to 1932.at Western Electric from 1927 to 1932.
Experimental findingsExperimental findings
Productivity unexpectedly increased under imposedProductivity unexpectedly increased under imposedadverse working conditions.adverse working conditions.
The effect of incentive plans was less thanThe effect of incentive plans was less than
expected.expected.
Research conclusionResearch conclusionSocial norms, group standards and attitudes moreSocial norms, group standards and attitudes more
strongly influence individual output and work behavior strongly influence individual output and work behavior
than do monetary incentives.than do monetary incentives.
The Hawthorne StudiesThe Hawthorne Studies
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The Systems ApproachThe Systems Approach
System DefinedSystem Defined A set of interrelated and interdependent parts A set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.arranged in a manner that produces a unified whole.
Basic Types of SystemsBasic Types of Systems
Closed systemsClosed systems Are not influenced by and do not interact with their Are not influenced by and do not interact with their
environment (all system input and output is internal).environment (all system input and output is internal).
Open systemsOpen systems
Dynamically interact to their environments by taking in inputsDynamically interact to their environments by taking in inputsand transforming them into outputs that are distributed intoand transforming them into outputs that are distributed into
their environments.their environments.
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Exhibit 2Exhibit 2 ± ± 66 The Organization as an Open SystemThe Organization as an Open System
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Implications of the Systems ApproachImplications of the Systems Approach
Coordination of the organizationCoordination of the organization¶¶s parts iss parts is
essential for proper functioning of the entireessential for proper functioning of the entire
organization.organization.
Decisions and actions taken in one area of theDecisions and actions taken in one area of the
organization will have an effect in other areas of organization will have an effect in other areas of the organization.the organization.
Organizations are not self Organizations are not self--contained and,contained and,
therefore, must adapt to changes in their therefore, must adapt to changes in their external environment.external environment.
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The Contingency ApproachThe Contingency Approach
Contingency Approach DefinedContingency Approach Defined Also sometimes called the Also sometimes called the situational appr oach.situational appr oach.
There is no one universally applicable set of There is no one universally applicable set of
management principles (rules) by which to managemanagement principles (rules) by which to manage
organizations.organizations.
Organizations are individually different, face differentOrganizations are individually different, face different
situations (contingency variables), and requiresituations (contingency variables), and require
different ways of managing.different ways of managing.
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Exhibit 2Exhibit 2 ± ± 77 Popular Contingency VariablesPopular 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 fromthose required by customized or nonroutine 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.
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Current Trends and IssuesCurrent Trends and Issues
GlobalizationGlobalization EthicsEthics
Workforce DiversityWorkforce Diversity
EntrepreneurshipEntrepreneurship
EE--businessbusiness
Knowledge ManagementKnowledge Management
Learning OrganizationsLearning Organizations
Quality ManagementQuality Management
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Current Trends and Issues (contCurrent Trends and Issues (cont¶¶d)d)
GlobalizationGlobalizationManagement in international organizationsManagement in international organizations
Political and cultural challenges of operating in aPolitical and cultural challenges of operating in a
global marketglobal market
Working with people from different culturesWorking with people from different cultures
Coping with anticapitalist backlashCoping with anticapitalist backlash
Movement of jobs to countries with lowMovement of jobs to countries with low--cost labor cost labor
EthicsEthics
Increased emphasis on ethics education in collegeIncreased emphasis on ethics education in college
curriculumscurriculums
Increased creation and use of codes of ethics byIncreased creation and use of codes of ethics by
businessesbusinesses
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Current Trends and Issues (contCurrent Trends and Issues (cont¶¶d)d)
Workforce DiversityWorkforce Diversity Increasing heterogeneity in the workforceIncreasing heterogeneity in the workforce
More gender, minority, ethnic, and other forms of diversity inMore gender, minority, ethnic, and other forms of diversity in
employeesemployees
Aging workforce Aging workforce
Older employees who work longer and do not retireOlder employees who work longer and do not retire
The increased costs of public and private benefits for older The increased costs of public and private benefits for older
workersworkers
An increasing demand for products and services related to An increasing demand for products and services related to
aging.aging.
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Current Trends and Issues (contCurrent Trends and Issues (cont¶¶d)d)
E
ntrepreneurship DefinedE
ntrepreneurship DefinedThe process of starting new businesses, generally inThe process of starting new businesses, generally in
response to opportunities.response to opportunities.
Entrepreneurship processEntrepreneurship process
Pursuit of opportunitiesPursuit of opportunities
Innovation in products, services, or business methodsInnovation in products, services, or business methods
Desire for continual growth of the organizationDesire for continual growth of the organization
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Current Trends and Issues (contCurrent Trends and Issues (cont¶¶d)d)
EE
--Business (E
lectronic Business)Business (E
lectronic Business)The work preformed by an organization usingThe work preformed by an organization using
electronic linkages to its key constituencieselectronic linkages to its key constituencies
EE--commerce: the sales and marketing aspect of an ecommerce: the sales and marketing aspect of an e--
businessbusiness
Categories of ECategories of E--BusinessesBusinesses
EE--business enhanced organizationbusiness enhanced organization
EE--business enabled organizationbusiness enabled organization
Total eTotal e--business organizationbusiness organization
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Current Trends and Issues (contCurrent Trends and Issues (cont¶¶d)d)
Learning OrganizationLearning Organization An organization that has developed the capacity to An organization that has developed the capacity to
continuously learn, adapt, and change.continuously learn, adapt, and change.
Knowledge ManagementKnowledge Management
The cultivation of a learning culture whereThe cultivation of a learning culture where
organizational members systematically gather andorganizational members systematically gather and
share knowledge with others in order to achieveshare knowledge with others in order to achieve
better performance.better performance.
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Exhibit 2Exhibit 2 ± ± 1010 Learning Organization versus Traditional OrganizationLearning Organization versus Traditional Organization
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Current Trends and Issues (contCurrent Trends and Issues (cont¶¶d)d)
Quality ManagementQuality Management A philosophy of management driven by continual A philosophy of management driven by continual
improvement in the quality of work processes andimprovement in the quality of work processes and
responding to customer needs and expectationsresponding to customer needs and expectations
Inspired by the total quality management (TQM) ideasInspired by the total quality management (TQM) ideasof Deming and Juranof Deming and Juran
Quality is not directly related to costQuality is not directly related to cost
Poor quality results in lower productivityPoor quality results in lower productivity
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Terms to KnowTerms to Know
Division of labor (or jobDivision of labor (or job
specialization)specialization)
Industrial RevolutionIndustrial Revolution
scientific managementscientific management
general administrative theorygeneral administrative theory
principles of managementprinciples of management bureaucracybureaucracy
quantitative approachquantitative approach
organizational behavior (OB)organizational behavior (OB)
Hawthorne StudiesHawthorne Studies
systemsystem
closed systemsclosed systems
open systemsopen systems
contingency approachcontingency approach
workforce diversityworkforce diversity
entrepreneurshipentrepreneurship
ee--business (electronicbusiness (electronicbusiness)business)
ee--commerce (electroniccommerce (electronic
commerce)commerce)
intranetintranet
learning organizationlearning organization
knowledge managementknowledge management
quality managementquality management