Management in Antiquity 1–* 3000 B.C. 2500 B.C. A Sumerians F Chinese B Egyptians C Babylonians D Greeks G Venetians E Romans 2000 B.C. 1500 B.C. 1000 B.C. 500 B.C. A.D. 1500 A.D. 500 A.D. 1000 A Used written rules and regulations for governance 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 E Used organized structure for communication and control F Used extensive organization structure for government agencies and the arts G Used organization design and planning concepts to control the seas *
Early Management Pioneers Adam Smith
A renowned economist
Writer of the book – Wealth of Nations (1776)
Division of work for economic advantage
Increasing individual worker’s skill and dexterity
1–* *
Early Management Pioneers Robert Owen (1771–1858)
British industrialist who was one of the first managers to recognize the importance of human resources and the welfare of workers. 1–* *
Early Management Pioneers
Charles Babbage (1792–1871)
English mathematician who focused on creating efficiencies of production through the division of labor, and the application of mathematics to management problems.
* *
An Integrative Framework of Management Perspectives Systems Approach • Recognition of internal interdependencies • Recognition of environmental influences Contingency Perspective • Recognition of the situational nature of management • Response to particular characteristics of situation Classical Management Perspectives Methods for enhancing efficiency and facilitating planning, organizing, and controlling Behavioral Management Perspectives Insights for moti- vating performance and understanding individual behavior, groups and teams, and leadership Quantitative Management Perspectives Techniques for improving decision making, resource allocation, and operations Effective and efficient management * *
Approaches to Management theories:
Different approaches to management theories evolved
can be classified as:
Classical Theory
a. Scientific management theory
b. Administrative management theory
2. Behavioral Science Theory
3. Management Science Theory
4. Decision Theory
5. Systems Theory
6. Contingency Theory * *
1. Classical Theory:
emerged in the early year of the twentieth century to increase efficiency and productivity due to evolution of large scale business.
constitutes the discipline & process of management in an organization.
also referred to as the traditional theory,
includes two different approaches
i. scientific management
ii. administrative management
A. Scientific Management Theory:
developed to increase productivity through labor efficiency in the early 20th century. * *
1. Classical Theory (contd.) :
A. Scientific Management Theory (contd.) :
prominent contributors of scientific management theory were Frederick W. Taylor, Frank & Lillian Gilbert and Henry Gantt.
F.W. Taylor was the greatest contributor and played the dominant role.
F.W.Taylor’s Scientific Management Theory:
F.W Taylor known as the “Father of Scientific Management”.
worked at the Midvale steel company, Philadelphia and Bethlehem Steel company, Pennsylvania. * *
1. Classical Theory (contd.) :
A. Scientific Management Theory (contd.) :
F.W.Taylor’s Scientific Management Theory (contd.) :
Observed (in these companies) that production & pay were poor, inefficiency existed, wastage was high, workers put into job without matching their abilities and the workers used different techniques to perform the same work.
realized that work efficiency was low due to lack of order and system
This led him to come out with “The principle of scientific management” in 1911 A.D. in which the explained the principles of scientific management.
emphasized one best method of doing work to increase efficiency & productivity. * *
A. Scientific Management Theory (contd.) :
F.W.Taylor’s Scientific Management Theory (contd.)
Taylor’s Principles:
concluded his studies by laying down certain principles :
Standardization
referring to the speed & rate at which work should be done
Using standard & right equipments and tools for the jobs.
development of true science of doing work by studying the nature of work and replacing rule of thumb.
Time and task study:
required to determine one best method of doing work.
Systematic selection & Training:
scientific selection of employees and providing proper training and developing them to undertake the task assigned
not letting workers choose the work but rather placing * *
A. Scientific Management Theory (contd.) :
F. W.Taylor’s Scientific Management Theory (contd.)
Taylor’s Principles (contd.) :
Systematic selection & Training (contd.) :
right person on the right job.
Pay Incentives:
referring to the increment in the payroll in accordance with the amount of work done in order to increase productivity.( paid according to piece produced)
employees motivated by economic incentives
greater pay for greater output and vice versa
Cooperation between managers and operatives:
referring to harmony between the employer and employee to accomplish work by dividing the work scientifically and systematically.
managers involved in planning the work, determining the working procedure, time of doing work etc & supervising * *
A. Scientific Management Theory (contd.) : F.W. Taylor’s Scientific Management Theory (contd.)
Taylor’s Principles (contd.) :
Cooperation between managers and operatives (contd.):
the employees
employees executing the plans as per the instructions
a mental revolution to be created by establishing understanding between employer and employees
Taylor’s Followers:
1. Henry Gantt
One of the followers of F.W. Taylor
a mechanical engineer who worked as a close associate of Taylor at the Midvale steel company. * *
Scientific Management Theory (contd.) :
Taylor’s Followers (contd.):
1. Henry Gantt
replaced Taylor’s differential piece rate system by combining a guaranteed day rate (minimum wage) with an above standard bonus.
however, known for originating a Graphic chart (Gantt Chart) as a scheduling device for planning & controlling work & this is his contribution to scientific management.
emphasized on the recognition of human factor and service rather than profits.
2.Frank and Lillian Gilbert
A team of husband and wife
Frank a construction contractor and Lillian a psychologist who too followed Taylor’s footsteps. * *
Scientific Management Theory (contd.) :
Taylor’s Followers (contd.):
2.Frank and Lillian Gilbert
used motion pictures to study hand and body motion by use of micro chronometer that recorded the time to determine the time spent on motion in doing a task.
conducted motion and fatigue study with the (help of) brick layering experiment
suggested economical motion (decrease unnecessary motions) to upgrade performance of each individual.
Developed performance efficiency techniques (scientific training, selection & development)
Improved working conditions by redesigning various machines & tools to fit people thereby reducing fatigue. * *
Scientific Management Theory (contd.) :
Contributions:
developed performance efficiency techniques ( like scientific training, selection, development etc.)
improved working conditions by redesigning various machines and tools to fit people for efficiency of work
emphasized over specialization and standardization for smooth flow of work
Limitations
viewed worker as undimensional beings interested in more money and motivated them i.e. Men were considered as machine.
Assumed that environment of organizations were predictable, stable & simple which is not realistic.
focuses on production, ignoring other sectors of management
no one best way of doing work * *
2. Administrative Management Theory
also referred to as the universalist or functional approach
focuses on the management of total organizations effectively; especially larger organizations
assumes that management process remains the same across all organizations
Prominent administrative theorists are
Henri Fayol and Max Weber
Henri Fayol
A French engineer, an industrialist as well as a successful administrator in a French mining company
Published a book in 1916 A.D. that was translated into English in 1929, entitled “General and Industrial Administration”
conceptualizes management functions & principles for the successful management of all types of organizations * *
B. Administrative Management Theory i. Henri Fayol (Contd.) believed that a manager's job could be divided into five functions
planning
organizing
commanding essential for managerial success coordinating
controlling
also stated a series of principles of management to guide managers resolve problems in a particular situation and carry out their functional duties.
Functions of Management
Emphasized that all managers must perform functions as * *
B. Administrative Management Theory
i. Henri Fayol (Contd.)
Functions of Management
1. Planning
Managers forecasting the events and developing an operating plan to guide future decisions
2. Organizing
Determining appropriate combination of resources (machine, material and human) to accomplish task.
3. Commanding
Directing the activities of subordinates through two-way communication
4. Coordinating
Arranging and integrating group efforts towards unity of action
5. Controlling
Ensuring actual activities are according to the plan set * *
B. Administrative Management Theory (contd.)
i. Henri Fayol (Contd.)
activities to be accomplished in industrial organizations:
1. Technical:
activities concerned with production.
2. Commercial:
activities like buying,selling and exchange functions.
3. Financial:
obtaining capital and optimum utilization of capital
4. Security:
protection of persons and property.
5. Accounting:
financial transactions recording.
6. Managerial:
activities of management like planning, organizing, commanding and controlling * *
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