Chapter 02 Traditional and Contemporary Isses and Challenges.ppt

Traditional and Contemporary Issues and ChallengesChapter 02

Chapter 02City University of Science and Information TechnologyFaisal Ghani

The Role of Theory and History in ManagementThe Importance of Theory and HistoryWhy Theory: A theory is a conceptual framework for organizing knowledge and provide outline for action.Why History: Awareness and understanding of important historical developments are also important to present managers. Understanding the historical context of management provides a sense of heritage and can help managers avoid the mistakes of others.


The Role of Theory and History in ManagementPrecursors of Management TheoryManagement in AntiquityEarly Management PioneersRobert Own (1771-1858)Employee WelfareBritish Industrialist and ReformerRecognized the importance of human resourceBetter working conditionsHigh minimum working ageMeals for employeesReduce work hours


The Role of Theory and History in ManagementEarly Management PioneersCharles Babbage (1792-1871) English MathematicianEfficiency of productionDivision of laborProfit sharing plan

On the Economy of Machinery and Manufactures


The Role of Theory and History in ManagementOther Management PioneersAndrew Ure was the 1st professor of teaching management in Glasgow in 17th centuryCharles Dupin of FranceDaniel McCallum published 1st Organizational ChartHenry Poor wrote about management efficiency in the railroad industry in 19th century


The Classical Management ProspectiveClassical Management Prospective consists of two distinct branches scientific management and administrative management.Scientific Management is an approach of management concerned with improving the performance of individual workers.


The Classical Management ProspectiveScientific ManagementFrederick W. Taylor (1856-1915)Foreman at the Midvale Steel Company in Philadelphia. He observed what he called Soldiering (employees deliberately working at a slow pace). He determined that:Piecework pay systemEach employee should be producing get paid accordinglyRest periods to reduce fatigue


The Classical Management ProspectiveScientific ManagementFrederick W. Taylor (1856-1915) suggested 4 basic steps in scientific management perspective.Develop a science for each elementof the job toreplace oldmethods.Scientifically select employees andthen train themto do the job asdescribed in step 1Supervise employeesto make sure theyfollow the prescribemethods forperforming their jobs.Continue to plan thework, but use workersto get the work done.

Step 1Step 2Step 3Step 4Steps in Scientific Management


The Classical Management ProspectiveScientific ManagementFrank Gilbreth (1868-1924)Lillian Gilbreth (1878-1972)Husband and a WifeHis most important contribution was to the craft of bricklaying. He developed techniques which brought 200% increase in work performance.Book and movie Cheaper by a Dozen


The Classical Management ProspectiveScientific ManagementHenry Gantt (1861-1919)He developed a Gantt Chart for scheduling work for workers. He also supported Taylor work of pay system.Harrington Emerson (1853-1931)He was a strong advocate of specialized management role in the organization.


The Classical Management ProspectiveClassical Management Prospective consists of two distinct branches scientific management and administrative management.Administrative Management is an approach to management that focuses managing the total organization.


The Classical Management ProspectiveAdministrative ManagementHenry Fayol (1841-1925)French IndustrialistHis book General and Industrial Management translated in English in 1930.Identified managerial functions of planning, organizing, leading and controlling. He systemized the practice of management to provide guidance to managers.He gave 14 effective points of management practice.


The Classical Management ProspectiveDivision of laborAuthorityDisciplineUnity of commandUnity of directionSubordination of the individuals to the common goodRemuneration CentralizationScalar chainOrderEquityStabilityInitiativeEsprit de corpsAdministrative ManagementHenry Fayol (1841-1925)


The Classical Management ProspectiveDivision of Labor: A high degree of specialization should result in efficiency.Authority: Authority is needed to carry out managerial responsibilities. Formal and Personal Authority.Discipline: People in the organization must respect the rules that govern the organization.Unity of Command: Each subordinate should report to one and only one superior.Unity of Direction: Similar activities in an organization should be grouped together under one manager.


The Classical Management ProspectiveSubordination of the Individuals to the Common Good: Interests of individuals should not be placed before the goals of the overall organization.Remuneration: Compensation should be fair both to employees and to the organization.Centralization: Power and authority should be concentrated at the upper levels of the organization as much as possible.Scalar Chain: A chain of authority should extend from the top to the bottom of the organization and should be followed all the time.


The Classical Management ProspectiveOrder: Human and material resources should be coordinated so that they are in the required place at the required time.Equity: Mangers should be kind and fair when dealing with subordinates.Stability: High turnover of the employees should be avoided.Initiative: Subordinates should have the freedom to take initiate.Esprit de Corps: Teamwork, team spirit, and sense of unity and togetherness should be fostered and maintained.


The Classical Management ProspectiveAdministrative ManagementLyndall Urwick (1891-1983)Planning, organizing and controllingMax Weber (1864-1920)German sociologistWorked on bureaucracy Chester Barnard (1886-1961)Acceptance of authority (He believed that order is accepted if the subordinate understands it, is able to comply with it, and views it as appropriate.)Book The Functions of the Executive


The Behavior Management PerspectiveBehavior Management Perspective emphasizes individual attitudes and behaviors and group process.

Psychological practices in the industry


The Behavior Management PerspectiveBehavior Management PerspectiveHugo Munsterberg (1863-1916) was a German psychologist, is known as father of industrial psychology.His book Psychology and Industrial Efficiency was translated in English in 1892.He believed that psychologists could make valuable contribution to managers in the area of section and motivation.


The Behavior Management PerspectiveBehavior Management PerspectiveMary Parker Follett (1968-1933) worked during the Scientific Management era. She appreciated the need to understand the role of behavior in organization.Her special interest was adult education and vocational guidance. She believed that organizations should be more democratic in accommodating employees and managers.


The Behavior Management PerspectiveThe Hawthorne StudiesElton Mayo faculty member and consultant at Harvard.Illumination Changed (Research conducted at Western Electrics Hawthorne Plant 1927-1932)Incentive pay plan for telephone exchangeRate bustersChiselers


The Behavior Management PerspectiveThe Human Relations MovementThe Human Relations Movement argued that workers respond primarily to the social context of the workplace including social conditioning, group norms, and interpersonal dynamics.Abraham Maslow (1908-1970) suggested that people are motivated by the hierarchy of needs including monetary incentives and social acceptance.Douglas McGregor (1906-1964) presented Theory X and Theory Y concepts.


The Behavior Management PerspectiveThe Human Relations MovementDouglas McGregor (1906-1964) presented Theory X and Theory Y concepts.Theory X: A pessimistic and negative view of workers consistent with the view of scientific management.Theory Y: A positive view or workers; it represents the assumptions that human relations advocates make.


The Behavior Management PerspectiveThe Human Relations MovementMcGregor Approach of Theory X & YTheory XPeople do not like work and try to avoid it.Managers have to control, direct, force and threaten employees to get them to work toward organization's goal.People prefer to be directed, to avoid responsibility, to want security; they have little ambition.


The Behavior Management PerspectiveThe Human Relations MovementMcGregor Approach of Theory X & YTheory YWork is a natural part of workers life.People are motivated and committed to objectives.Committed to goals to the degree that they get personal reward.Under favorable conditions they accept and seek responsibilities.People have the capacity to be innovative in solving problems.People are bright but under most conditions their potentials are underutilized


The Behavior Management PerspectiveThe Emergence of Organizational BehaviorA contemporary (modern) behavioral perspective on management that takes a holistic view of behavior by addressing individual, group and organization processes. Organizational behavior is based on:PsychologySociologyAnthropologyEconomicsJob satisfaction, stress, motivation, leadership, group dynamics, organizational politics, interpersonal conflicts, and design and structure of organization.


The Quantitative Management PerspectiveQuantitative Management Perspective is an approach to management in which quantitative techniques are applied to management.Quantitative management perspective focuses on:decision makingeconomic effectivenessmathematical models andthe use of computers.


The Quantitative Management PerspectiveQuantitative Management Perspective consists of two distinct branches management science and operations management.Management Science focuses specifically on the development of mathematical models. (e.g. how many tellers on duty for how long, collision damage to cars)Operations Management is concerned with helping the organization more efficiently produce its product and services. (e.g. flight schedules, shipping routs etc.)


Integrating Perspective for ManagersInput from theenvironment:material inputs,human inputs,financial inputs, andinformation inputsTransformation process: technology,operating systems,Administrativesystems, andcontrol systemsOutput into the environment:products/ services,profits/ losses,employees behavior,and information outputFeedbackThe Systems Perspective of Organizations


Integrating Perspective for ManagersThe Systems PerspectiveSystem: An interrelated set of elements functioning as a whole.Open System: A system that interacts with its environment.Closed System: A system that does not interact with its environment.Subsystems are systems within a broader system.Synergy is when two subsystems working together produce more then the total of what they might produce if working alone.Entropy is a normal process leading to system decline. (ignoring feedback)


Integrating Perspective for ManagersThe Contingency Perspective is an approach to management that suggest that appropriate managerial behavior in a given situation depends, or is contingent on, a wide variety of elements.Each organization is unique.Every human recourse has different approach to work. (e.g. money, status, social acceptance etc.)


An Integrative Framework


Contemporary Management Issues and ChallengesContemporary Applied PerspectiveThomas Peter and Robert Waterman In Search of ExcellenceWilliam Ouchi (1981)Theory Z


Contemporary Management Issues and ChallengesContemporary Applied PerspectiveWilliam Ouchi (1981) Theory ZAn attempt to integrate common business practices in the US and Japan into a middle-ground framework.Length of employmentModel of decision makingLocation of responsibilitySpeed of evaluation and promotionMechanism of controlSpecialization of career pathNature of concern for the employees


Contemporary Management Issues and ChallengesContemporary Management Challenges include:Globalization of businessQuality and productivityDownsizing and cutbacksOwnership issuesEthics and social responsibilitiesWork-force diversity

Chapter 02 Traditional and Contemporary Isses and Challenges.ppt

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