A Knowledge of Management History

EvolutionEvolution

The Pre modern EraThe Pre modern Era Example : Taj Mahal Example : Taj Mahal Building began around 1632 – 1653Building began around 1632 – 1653 Employed thousands of artisans and Employed thousands of artisans and

craftsmencraftsmen Supervision done by Ad ul- Karim Supervision done by Ad ul- Karim

Ma’mur Khan,Makramat Khan , and Ma’mur Khan,Makramat Khan , and Ustad Ahmad Lahauri Ustad Ahmad Lahauri

Lahauri considered to be the principal Lahauri considered to be the principal designer designer

Industrial Revolution Industrial Revolution Pre – twentieth-century Pre – twentieth-century It originating in late-eighteen-century It originating in late-eighteen-century

in Great Britain in Great Britain The advent of machine power, mass The advent of machine power, mass

production, the reduced production, the reduced transportation costs that followed the transportation costs that followed the rapid expansion of the railroads lead rapid expansion of the railroads lead to Industrial Revolution to Industrial Revolution

Approaches to Approaches to Management Management

Classical Approaches Classical Approaches Human Resources Approaches Human Resources Approaches Quantitative Approaches Quantitative Approaches

Classical ContributionClassical Contribution The roots of modern management lie The roots of modern management lie

with a group of practitioners and with a group of practitioners and written who sought to formulate written who sought to formulate rational principles that would make rational principles that would make organizations more efficient. organizations more efficient.

They set theoretical foundations for a They set theoretical foundations for a discipline called management, and discipline called management, and their contributions known as the their contributions known as the classical approach to management.classical approach to management.

Classical Approach Classical Approach divides into two divides into two

categoriescategories Scientific ManagementScientific Management – focused – focused

on of how to improve the productivity on of how to improve the productivity of operative personnel of operative personnel

General Administrative theoryGeneral Administrative theory – – focused on the overall organization focused on the overall organization and how to make it more effective and how to make it more effective

Scientific ManagementScientific Management The use of the scientific method to The use of the scientific method to

define the “one best way" for a job to define the “one best way" for a job to be donebe done..

1911 – Principles of Scientific 1911 – Principles of Scientific ManagementManagement

Father of Scientific Father of Scientific Management Management

Frederick .Winslow .Taylor

Taylor’s Four Principles Taylor’s Four Principles of Management of Management

Develop a science for each elements Develop a science for each elements of an individual’s work, which replaces of an individual’s work, which replaces the old rule-of thumb methodthe old rule-of thumb method

Scientifically select and then train, Scientifically select and then train, teach, and develop the workers.teach, and develop the workers.( Previously workers chose their own ( Previously workers chose their own work and trained themselves as best work and trained themselves as best they could )they could )

Heartily cooperate with the workers so as Heartily cooperate with the workers so as to ensure that all work is done in to ensure that all work is done in accordance with principles of science that accordance with principles of science that has been developed.has been developed.

Divide work and responsibility almost Divide work and responsibility almost equally between management and equally between management and workers. Management takes over all work workers. Management takes over all work for which it is better fitted than the for which it is better fitted than the workers.( Previously , almost all the work workers.( Previously , almost all the work and the greater part of responsibility were and the greater part of responsibility were thrown upon the workers thrown upon the workers

General Administrative General Administrative Theory Theory

General Administrative Theory – General Administrative Theory – What mangers do and what What mangers do and what constitute good management constitute good management practice.practice.

General Management General Management Theorist Theorist

Henri Fayol Max Weber

Principles of Principles of Management Management

Fayol’s fundamentals or universal Fayol’s fundamentals or universal principles of management practices .principles of management practices .

Fayol described as management is an Fayol described as management is an activity common to all human activity common to all human undertakings in business, in undertakings in business, in organization ,in government and even organization ,in government and even in home. in home.

Fayol’s Fourteen Fayol’s Fourteen Principles of Principles of Management 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 Individual Interest Subordination of Individual Interest

to the General Interest to the General 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 Tenure of Personnel Stability of Tenure of Personnel 13)13) Initiative Initiative 14)14) Esprit de Corps Esprit de Corps

Bureaucracy Bureaucracy Weber’s ideal type of organization Weber’s ideal type of organization

characterized by division of labor, a characterized by division of labor, a clearly defined hierarchy, detailed rules clearly defined hierarchy, detailed rules and regulations, and impersonal and regulations, and impersonal relationships.relationships.

Weber's Ideal Weber's Ideal bureaucracy bureaucracy

1)1) Division Of labor Division Of labor 2)2) Authority HierarchyAuthority Hierarchy3)3) Formal Selection Formal Selection 4)4) Formal Rules and Regulations Formal Rules and Regulations 5)5) Impersonality Impersonality 6)6) Career Orientation Career Orientation

Human ApproachesHuman Approaches Robert Owen Robert Owen Hugo Munster bergHugo Munster berg Mary Parker Follet Mary Parker Follet Chester Barnard Chester Barnard Elton Mayo – they all are considered Elton Mayo – they all are considered

as early advocates of human as early advocates of human resources approach resources approach

Hawthorne Studies Hawthorne Studies A series of studies during the 1920’s and A series of studies during the 1920’s and

1930’s that provided new insights into group 1930’s that provided new insights into group norms and behaviornorms and behavior

Study undertaken at Western Electric Study undertaken at Western Electric Company’s Hawthorne Works in Cicero, Company’s Hawthorne Works in Cicero, IllinoisIllinois

Started 1924 and continued till 1932Started 1924 and continued till 1932 The study was mainly the effect of different The study was mainly the effect of different

illumination levels on worker productivity illumination levels on worker productivity

The Quantitative The Quantitative Approach Approach

Operation Research or Management Operation Research or Management ScienceScience

Evolved out of the development of Evolved out of the development of mathematical and statistical mathematical and statistical solutions to military problems during solutions to military problems during World War II World War II

Linear programming is a techniques Linear programming is a techniques that managers can use to improve that managers can use to improve resources allocation resources allocation

CPM – Critical Path Method CPM – Critical Path Method PERT – Performance Evaluation PERT – Performance Evaluation

review Techniques review Techniques Economic Order Quantity Economic Order Quantity

Process ApproachProcess Approach The performances of planning, The performances of planning,

leading and controlling activities is leading and controlling activities is seen as circular and continuousseen as circular and continuous

System Approach System Approach

A system as a set of interrelated and A system as a set of interrelated and interdependent parts arranged in a interdependent parts arranged in a manner that produces a unified manner that produces a unified wholewhole

There are two types of systems – There are two types of systems – Closed / Open Systems Closed / Open Systems

Closed System – A system that is not Closed System – A system that is not influenced by and does not interact influenced by and does not interact with its environment with its environment

e.g. : watche.g. : watch

Open System – A system that Open System – A system that dynamically interacts with its dynamically interacts with its environmentenvironment

e.g. Human beings , Organization e.g. Human beings , Organization

Organization and Organization and Environment Environment

Suppliers

Customers

Labor Unions

Government

Public Pressure Groups

The Organization

Competitors

Global

Political

Social

Economical

Technological

Contingency Contingency Approach/Situational Approach/Situational

Approach Approach The situational approach to The situational approach to

management that replaces more management that replaces more simplistic systems and integrates simplistic systems and integrates much of management theory much of management theory

Popular Contingency Popular Contingency variables variables

Organization Size Organization Size Routines of task technology Routines of task technology Environmental Uncertainty Environmental Uncertainty Individual Difference Individual Difference