GDM 101 MANAGEMENT FUNDAMENTALS. Introduction to Management. Session No.01 Part II. Senior Lecturer: Mrs J.S.Senevirathne

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1 GDM 101 MANAGEMENT FUNDAMENTALS Session No.01 Part II Introduction to Management Senior Lecturer: Mrs J.S.Senevirathne Department of Business Administration Faculty of Management Studies and Commerce University of Sri Jayewardenepura

2 Learning Outcomes Understand the progressive stages of the evolution of management thought. Identify the key contributors towards the evolution of management thought. Describe and evaluate different approaches/schools of management thought. Discuss the relevance of different approaches/schools of management thought towards modern day management. 2

3 Progressive Stages of the Evolution of Management Development of an informal body of management thought Main forces that preceded the development of a formal body of management thought Development of a formal body of management thought 3

4 The Historical Context of Management Management Through the Ages D Greeks C Babylonians G Venetians B Egyptians E Romans A Sumerians F Chinese 3000 B.C B.C B.C B.C B.C. 500 B.C. A.D. 500 A.D A.D A Used written rules and regulations for governance E Used organized structure for communication and control B Used management practices to construct pyramids C Used extensive set of laws and policies for governance D Used different governing systems for cities and state F Used extensive organization structure for government agencies and the arts G Used organization design and planning concepts to control the seas

5 Early Management Pioneers Robert Owen ( ) Charles Babbage ( ) Henry R.Towne ( )

6 Forces that preceded the development of a formal management thought in the West The Protestant Work Ethic Capitalism & Division of Labour The Industrial Revolution The Productivity Problem 6

7 Development of a Formal Body of Management Thought Classical approach Behavioural approach Management Science approach System approach Contingency approach 7 7

8 8 Classical Approach to Management Scientific Management Theory Administrative Management Theory Bureaucratic Management Theory Scientific Management Theory, Administrative Management Theory and Bureaucratic Management Theory

9 Classical Approach Scientific Management Theory This theory focuses on improvement of operational efficiencies through the systematic and scientific study of work methods, tools, and performance standards. Key Contributors to the Scientific Management F. W. Taylor ( ) Frank Gilbreth ( ) Lillian Gilbreth ( ) Henry Gantt ( ) 9

10 Scientific Management Fredrick Winslow Taylor ( The father of scientific management Published Principles of Scientific Management (1911) Used the scientific method 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. 10

11 Circumstances Prevailed in Organizations Labour Inefficiency & Poor Productivity Soldiering Rule of Thumb Lack of concern for working conditions Unavailability of an effective incentive method 11

12 Assumptions of Scientific Management 1 Man is a rational economic creature There is one best method of work 2 3 Workers have the potential of following any work method 12

13 Taylor s Principles of Scientific Management The development of a true science of work. The scientific selection of workers. The scientific education and development (training) of the worker. Intimate, friendly cooperation between management and labour. Tie the work performance of employees with the economic rewards. 13

14 Think What are the contributions and criticisms of Scientific Management? 14

15 15 Classical Approach Administrative Management Administrative Management theory focuses on the improvement of productivity of entire organization. Key Contributors to the Administrative Management Theory Henri Fayol ( ) Lyndall Urwick ( ) Max Weber ( ) Chester Barnard ( )

16 Administrative Theory (Henry Fayol) Analyzed three aspects of Management Activities of an enterprise Elements of management Principles of management 16

17 Activities of an Enterprise Technical Commercial Financial Accounting Security Managerial Elements of Management To Plan To Organize To Command To Control 17

18 Principles of Management o Division of work o Authority o Discipline o Unity of Command o Unity of direction o Subordination of individual interest to the common interest o Remuneration o Centralization o Scalar chain o Order o Equity o Stability of tenure of personnel o Initiative o Esprit de corps

19 Bureaucratic Management (Max Weber) 19

20 Comparison of Traditional Theories Taylor Fayol Weber Focus Individual work efficiency (Micro) Organizational efficiency (Macro) Bureaucratic rationality (Macro) Methodology Scientific Methods Administrative Principles Bureaucratic principles 20

21 Behavioural Approach Scientific Management Theory, Administrative Management Theory and Bureaucratic Management Theory The Behavioral School Key Contributors to the Behavioural Approach Mary Parker Follet ( ) Chester Bernard ( ) Elton Mayo ( ) Abraham Maslow ( ) Douglas McGregor ( ) 21

22 Behavioural Approach Humanistic Perspective Emphasized the importance of understanding human behaviour, needs and attitudes in the workplace as well as social interactions and group processes. Three sub-fields on the Humanistic Perspective : Human Relations Movement Human Resources Perspective Behavioural Sciences Approach (Daft, 2012) 22

23 Human Relation Approach (Elton Mayo) This school of thought was based on the idea that truly effective control comes from within the individual worker rather than from strict, authoritarian control. Hawthorne Experiments From 1924 to 1933 At Hawthorne Plant of Western Electrical Company, USA Involved five steps 1. Illumination Studies 2. Relay Assembly Test Room 3. Interviewing 4. Bank wiring Observation Room 5. Personnel Counseling 23

24 Human Relation Approach (Cont ) Hawthorne Effect Paying special attention to employees motivates them to put greater effort into their jobs. If special attention is paid to social factors at work and behaviour of employees within an organization, there will be a motivation to work and productivity will improve. 24

25 Human Relation Approach (Cont ) Hawthorne Experiments: Conclusions 1 Man is a social creature that should be motivated by acknowledging his/her social needs. The need for social relationships is more important than the physical work environment or monetary incentives. 2 25

26 3 Work is a group activity. Workers, therefore, do not normally act or react as individuals but as members of groups. These groups need not be the formal groups set up by management. Informal groups throughout the factory exercise control over the way individual workers think and act and have a strong influence on productivity. Therefore, levels of work are not set by physical abilities, but by group attitudes. 26

27 Work settings are complex social systems. In order to fully comprehend behaviour in them it is necessary to understand Communication between workers Their relationships Work attitudes Group norms etc. 27

28 Behavioural Approach (Cont ) Human Resources Perspective Recognised the worker as the most important resource of the organization and should carefully addressed to all the needs (economic, social, psychological, physical and spiritual) of them for the enhancement of productivity. Abraham Maslow and Douglas McGregor are the best-known contributors to this perspective. 28

29 Behavioural Approach (Cont ) Behavioural Science Approach Perceived the employee to be a Complex Man Uses the knowledge derived from social sciences ( Psychology, Sociology, Anthropology, Political Science and Socio-psychology) 29

30 Criticisms of Behavioural Approach Too much emphasis on the human factor and their behaviour Less emphasis on technology, systems and environment Too complex to analyze and understand the human behaviour Dominance of labour factor has created many labour problems Difficult to predict and control the human behaviour 30

31 Management Science Approach Scientific Management Theory, Administrative Management Theory and Bureaucratic Management Theory The Behavioral School Management Science Approach Application of mathematical models and programmes to solve business problems. E.g. Linear programming, Non-linear programming, Queuing theory, Inventory modeling, Simulation techniques etc. 31

32 Systems Approach Scientific Management Theory, Administrative Management Theory and Bureaucratic Management Theory The Behavioral School Management Science Approach Systems Approach 32

33 Systems Approach (Cont ) Systems Approach to management views the organization as a unified, purposeful system composed of interrelated parts. This approach gives managers a way of looking at the organization as a whole as a part of the larger environment. (Stoner et.al., 2009) 33

34 Systems Approach (Cont ) System Subsystem Open systems Close systems System boundary Flow Entropy Synergy 34

35 Contingency Approach Scientific Management Theory, Administrative Management Theory and Bureaucratic Management Theory The Behavioral School Management Science Approach Systems Approach Contingency Approach 35

36 Contingency Approach (Cont ) Suggests that there is no one best way of managing all situations The management technique that best contributes to the attainment of organizational goals might vary in different types of situations. 36

37 Evolving Contemporary Management Practices Learning Organisations Knowledge Management Supply Chain Management Quality Management Diversity Management Technology Management/E - Management Innovation Management Global Business Management 37

38 Thank You 38

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