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Introduction to Management Course Instructor : 2,3 2,3

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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