Image retrieved from http://www.strategicmgtpartners.com/library/iceobenefits.

html
 MANAGEMENT
about „getting things done‟

encompasses an array of different functions undertaken to accomplish a task

successfully

process of designing and maintaining an environment in which individuals,

working to gather in groups, efficiently accomplish selected aims

has many approaches --varying from a problem to problem solving style to

the change

each approach has its own limitations and advantages.

MANAGEMENT
“Management is the art of knowing what
you want to do and then seeing that it is
done in the best and cheapest way.”
- F .W. Taylor

“Management is a multipurpose
organ that manage a business
and manages Managers and
manages Workers and work.”
-Peter Drucker
The Value of Studying
MANAGEMENT
 The universality of management
Good management is needed in all organizations.
 The reality of work
Employees either manage or are managed.
 Rewards and challenges of being a manager
Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
Successful managers receive significant monetary
rewards for their efforts.
Universal Need for
Management
Efficiency and Effectiveness in
Management
Managerial Concerns
 Efficiency
 “Doing things right”
Getting the most output for the least inputs
 Effectiveness
 “Doing the right things”
Attaining organizational goals
Efficiency and Effectiveness in Management
ENVIRONMENT FACTORS
• The aspects of culture that influence norms
SOCIAL
INFLUENCE
and values

• The concept to availability, production, and

ECONOMIC
INFLUENCE
distribution of resources within a society

• The impact of political institutions on

POLITICAL
INFLUENCE
individuals and organisations
EVOLUTION OF MANAGEMENT THOUGHT
DIFFERENT APPROACHES
• SCIENTIFIC
CLASSICAL • ADMINISTRATIVE
• BUREAUCRATIC

• GROUP INFLUENCES
• MASLOW’S NEED THEORY
BEHAVIORAL • THEORY X AND THEORY Y
• HAWTHORNE STUDIES

• THEORY Z
• TOTAL QUALITY MANAGEMENT
MODERN •
•
MANAGEMENT BY OBJECTIVES
SITUATIONAL LEADERSHIP
CLASSICAL APPROACH
Focuses on the
individual worker‟s Focuses on the
productivity overall
organizational
system

Focuses on the
functions of
management
CLASSICAL APPROACH
I. SCIENTIFIC MANAGEMENT
Father of SM: Frederick Taylor
• develop a scientific approach for each element of one‟s work
• scientifically select, train, teach and develop each worker
FOUR • cooperate with workers to ensure that jobs match plans and
PRINCIPLES principles
• ensure appropriate division of labor

• Task Performance
THREE AREAS OF • Supervision
FOCUS • Motivation

TWO MANAGERIAL • Piece-rate-incentive system

PRACTICES • Time and motion study
I. SCIENTIFIC MANAGEMENT
Father of SM: Frederick Taylor CONT‟D

• SM became nationally known, but the selective

implementation of the principles created more harm than
good.
• Workers felt that as their performance
increased, managers required them to do
more work for the same pay.

• Increases in performance meant fewer jobs

and greater threat of layoffs

• Monotonous and repetitive

• Dissatisfaction
I. SCIENTIFIC MANAGEMENT cont’d
Henry Gantt and The Gilberths
• Most famous for developing the Gantt chart in the 1910s.
HENRY • Implemented a wage incentive program
GANTT

• Specialized in time and motion studies to determine the most

efficient way to perform tasks.
FRANK • Used motion pictures of bricklayers to identified work elements
GILBERTH (therbligs) such as lifting and grasping

• A strong proponent of better working conditions as a means of

LILLIAN improving efficiency and productivity.
GILBERTH
I. SCIENTIFIC MANAGEMENT cont’d
Henry Gantt and The Gilberths





I. SCIENTIFIC MANAGEMENT cont’d
Henry Gantt and The Gilberths

II. BUREAUCRATIC MGMT.
Focuses on the overall organizational system.

Need for organizations to function on a rational

basis

Bureaucratic management is based upon:

• Firm rules
• Policies and procedures
• A fixed hierarchy
• A clear division of labor
II. BUREAUCRATIC MGMT. cont’d

Father of BM Theory: Max Weber

• A German sociologist and historian who

envisioned a system of management
MAX WEBER
• “a bureaucracy is a highly structured,
formalized and impersonal organization.”

• Division of labor
• Hierarchy of authority
FIVE
PRINCIPLES • Rules and procedures
• Impersonality
• Employee selection and promotion
IDEAL BUREAUCRACY







III. ADMINISTRATIVE MGMT.

Five management
Focused on principles functions
that could be used by • planning
managers to • organizing
coordinate the internal • commanding
activities of • coordinating
organizations
• controlling
III. ADMINISTRATIVE MANAGEMENT cont’d
HENRI FAYOL’s PRINCIPLES of MANAGEMENT
1. Division of labor 8. Centralization

2. Authority and responsibility 9. Scalar chain

3. Discipline 10. Order

4. Unity of command 11. Equity

5. Unity of direction 12. Stability

6. Subordination of individual interest to

the common good 13. Initiative

7. Remuneration of personnel 14. Esprit de corps








CLASSICAL APPROACH Summary
BEHAVIORAL APPROACH
BEHAVIORAL APPROACH

The study of how managers

should behave to motivate
employees and encourage
them to perform at high
levels and be committed to
the achievement of
organizational goals.
BEHAVIORAL APPROACH
The behavioral school of
management emphasized what
the classical theorists ignored.

Acknowledged the importance of

human behavior in shaping
management style.

Personalities
• Mary Parker Follett
• Douglas McGregor
• Chester Barnard
• Elton Mayo
 BEHAVIORAL APPROACH
Abraham Maslow‟s Hierarchy of Human Needs

SELF
ACTUALIZATION

NEED FOR SELF

ESTEEM

NEED FOR SOCIAL

RELATIONS

NEED FOR SECURITY

PHYSIOLOGICAL NEEDS
BEHAVIORAL APPROACH
 BEHAVIORAL APPROACH cont’d
Mary Parker Follett
ON EFFECTIVE WORK GROUPS

FOUR PRINCIPLES OF COORDINATION

• Coordination requires that people be in direct contact

with one another.
• Coordination is essential during the initial stages of
any endeavor.
• Coordination must address all factors and phases of
any endeavor.
• Coordination is a continuous, ongoing process.
 BEHAVIORAL APPROACH cont’d
Mary Parker Follett
ON EFFECTIVE WORK GROUPS
BEHAVIORAL APPROACH cont’d
Mary Parker Follett
ON EFFECTIVE WORK GROUPS
BEHAVIORAL APPROACH cont’d
Mary Parker Follett
ON EFFECTIVE WORK GROUPS
 BEHAVIORAL APPROACH cont’d

Douglas McGregor's Proposed Styles

THEORY X THEORY Y
• Most people dislike work • Work is a natural activity
and they avoid it when like play or rest.
they can. • Capable of self direction
• Coerced and threatened and self control.
with punishment before • Committed to
they work. organizational
• Avoid responsibility and objectives.
have little ambition.
 BEHAVIORAL APPROACH cont’d

Elton Mayo’s View

Aimed to understand how psychological and social
processes interact with the work situation to influence
performance

Work represents the transition from scientific

management to the early human relations movement.

Emphasized on workers themselves and needs to

belong to a group
 BEHAVIORAL APPROACH cont’d

Elton Mayo’s Hawthorne Study (1924-1932)

“HAWTHORNE EFFECT”
• Workers perform and react differently when
researchers observe them.
• Productivity increased because attention was paid
to the workers in the experiment.
• Phenomenon whereby individual or group
performance is influenced by human behavior
factors
 BEHAVIORAL APPROACH cont’d

Elton Mayo’s Hawthorne Study (1924-1932)

“HAWTHORNE EFFECT”
• The finding that a manager’s behavior or
leadership approach can affect worker’s level of
performance.
MODERN APPROACH
 MODERN APPROACH
William Ouchi‟s Theory Z

 assumes employees have an

interest in good working
relationships with management
and other employees
 MODERN APPROACH cont’d

William Ouchi‟s Theory Z

 Management generally has high

confidence in employees, who are
encouraged to participate in the
management decision making.
 MODERN APPROACH cont’d

William Ouchi‟s Theory Z

Employees are viewed as long-term

assets who will stay with the same
firm throughout their careers.
 MODERN APPROACH cont’d

William Ouchi‟s Theory Z


MODERN APPROACH cont’d

William Ouchi‟s Theory Z

 MODERN APPROACH cont’d

William Ouchi‟s Theory Z

THEORY Z
 Long-term Employment

 Consensual Decision
Making
Individual Responsibility
 Slow Evaluation &
Promotion
 Informal Control With
Formalized Measures
Moderately Specialized
Career Path
 Holistic Concern
 MODERN APPROACH cont’d

Total Quality Management

 comprehensive approach for improving
product quality and get customer satisfaction

 management philosophy of improving

product quality through everyone’s
commitment & involvement to satisfy
consumer needs
 MODERN APPROACH cont’d

Total Quality Management

 Walter A. Shewhart (1920s & 1930s)
 Grandfather of quality control

 Contributed to understand the process of variability

 Developed concept of statistical control charts

 MODERN APPROACH cont’d

Total Quality Management

 W. Edwards Deming (1940s & 1950s)
 Father of quality control
 Stressed management’s responsibility for quality
 Developed “14 points” to guide companies in quality
improvement
 MODERN APPROACH cont’d

Total Quality Management

 W. Edwards Deming (1940s & 1950s)
 Japanese established “Deming Prize” in his name
 15% of quality problems are actually due to worker error
 85% of quality problems are caused by systems and
errors
 MODERN APPROACH cont’d

Total Quality Management

 Joseph M. Juran (1950s)
 Defined quality as “fitness for use”

 Developed concept of cost of quality

 Originated idea of quality trilogy

 Quality planning

 Quality control

 Quality improvement
 MODERN APPROACH cont’d

Total Quality Management

 Armand V. Feigenbaum (1960s)

 Introduced the concept of

total quality control

 MODERN APPROACH cont’d

Total Quality Management

 Philip B. Crosby (1970s)
 Coined phrase “quality is free”

 Introduced concept of zero defects

 Developed the phrase “Do it right the first time”

 MODERN APPROACH cont’d

Total Quality Management

 TQM focuses on serving the customer’s quality needs

 MODERN APPROACH cont’d

Total Quality Management

 TQM uses continuous improvement, quality at

the source, employee empowerment, quality
tools, teams, benchmarking, and supplier
certification
 MODERN APPROACH cont’d

Total Quality Management

 Four dimensions: product/service design,

conformance, easy of use, post-sale support
MODERN APPROACH cont’d

Total Quality Management

TQM Competitive Benefit

 MODERN APPROACH cont’d

Total Quality Management

 It makes the company a  Quality improves

leader
 Fastens the team work  Increased productivity
 Makes the company more
sensitive to customer  Staffs are more motivated
needs.
 Makes the company adapt  Cost reduced
more readily to changes.
 MODERN APPROACH cont’d

Management By Objectives (MBO)

 also known as Management By Results (MBR), is a

process of defining objectives within an organization so
that management and employees agree to the
objectives and understand what they need to do in the
organization in order to achieve them
MODERN APPROACH cont’d

Management By Objectives (MBO)

MODERN APPROACH cont’d

Management By Objectives (MBO)

MODERN APPROACH cont’d

Management By Objectives (MBO)

 MODERN APPROACH cont’d

Management By Objectives (MBO)

Advantages
 Develops result-oriented philosophy
 Formulation of dearer goals
 Facilitates objective appraisal
 Raises employee morale
 Facilitates effective planning
 Acts as motivational force
 Facilitates effective control
 Facilitates personal leadership
 MODERN APPROACH cont’d

Management By Objectives (MBO)

Limitations
Time-consuming
Reward-punishment approach
Increases paper work
Creates organizational problems
Develops conflicting objectives
Problem of coordination
Lacks durability
Problems related to goal-setting
Lack of appreciation
 MODERN APPROACH cont’d

Management By Objectives (MBO)

Turning their aims into successful actions, forces
managers to master five basic operations:

1) setting objectives
2) organizing the group
3) motivating and communicating
4) measuring performance
5) developing people, including yourself
MODERN APPROACH
Situational Leadership
Key Reference
Evolution of Management Thought
by Bhavin Aswani, posted Nov. 26, 2012
http://www.slideshare.net/bhavinaswani/evolution-of-
management-thought-15357449?qid=61275941-4815-4988-87c1-
f57ba7fbfc1f&v=qf1&b=&from_search=4
Other References
The Evolution of Management Study Chapter 2
Posted by Management 2 on Apr. 11, 2009
http://www.slideshare.net/bsetm/chapter-2-the-evolution-of-
management-theory?qid=05f93aab-81b0-475e-954b-
c0aa2c6ceb2a&v=qf1&b=&from_search=1

Management Yesterday and Today

Posted by Management 2 on Apr. 11, 2009
http://www.slideshare.net/bsetm/chapter-2-the-evolution-of-
management-theory-written-in-different-manner?qid=606c7b90-
286a-4a98-95e2-613238e6f09c&v=qf1&b=&from_search=3
Other References
http://www.slideshare.net/sadhikakatiyar/meaningnaturescopeprocess-of-
management-approaches-of-a-system

http://wps.pearsoncustom.com/coco_principles_management/90/23041/
5898655.cw/index.html

http://www.strategicmgtpartners.com/library/iceobenefits.html

http://www.inc.com/leigh-buchanan/10-traits-of-a-drucker-like-
leader.html

http://www.slideshare.net/SarahWright/email-measurement-is-
evolvingare-you
Other References
https://encrypted-
tbn0.gstatic.com/images?q=tbn:ANd9GcRVCYztnUzMn2DPLRzV86OuLwl63
k32IBAb2t2qtGMpMRSCxFah

http://smartbusinesstrends.com/wp-content/uploads/2013/05/peter-
drucker-businsess-quotes2.png

http://dilipchandra12.hubpages.com/hub/Frederick-Winslow-Taylor

http://image.slidesharecdn.com/xyztheories-110717231933-
phpapp01/95/xyz-theories-of-management-5-728.jpg?cb=1310963416

http://en.wikipedia.org/wiki/Walter_A._Shewhart#/media/File:WalterShe
whart.gif
Other References
http://leaderquote.com/wp-content/uploads/2012/04/w-edwards-
deming-it-is-not-enough-to-do-your-best-you-must-know-what-to-do-and-
then-do-your-best.jpg

http://www.industryweek.com/site-
files/industryweek.com/files/uploads/2014/11/Feigenbaum-Cover.jpg

http://blog.proqc.com/remembering-philip-b-crosby-quality-is-free/

http://timvandevall.com/wp-content/uploads/2013/11/Maslows-
Hierarchy-of-Needs.jpg
Other References
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