MGT 113 PRINCIPLES OF MANAGEMENT

Management Theories-history and

current thinking

Chapter Two

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Historical Background Of Management

• Organizations Have Existed for Thousands of Years– testifies to the existence of early management

practice• ability to create the Pyramids, Great Wall of China

• Significant Pre-Twentieth-Century Events– Wealth of Nations - Adam Smith

• division of labor - breakdown of jobs into narrow and repetitive tasks increased productivity

– Industrial Revolution • substitution of machine power for human power• large organizations required formal management2

Historical Background Of Management

Siapakah Bapa Pengurusan Scientific Management?

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Historical Background Of Management

• Frederick Winslow Taylor (March 20, 1856 – March 21,

1915) was an American mechanical engineer who

sought to improve industrial efficiency. • He is regarded as the father of scientific management

and was one of the first management consultants. • Taylor was one of the intellectual leaders of the

Efficiency Movement and his ideas, broadly conceived, were highly influential in the Progressive Era.

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Scientific Management

• F.W. Taylor 1856-1915 “Father of Scientific Management”– use of scientific methods to define the “one best way” for a job

to be done.– perspective of improving the productivity and efficiency of

manual workers.– Current practice: Pace productivity- a consulting company

that offers time efficiency analysis services to managers. The company uses proprietary instrument called a Time corder, a handheld electronic device that allows employees to track their own time by pushing buttons associated with pre coded work activities. When an employee presses a new button, time stops recording on the previous activity and begins recording on a new one. The Time corder tracks how many times each activity occurs as well as how much time is cumulatively spent on each activity. Pace productivity provides managers with summary reports concerning how many times work activities are performed, time spent on them, and suggestions for improving worker efficiency based upon the results of their study. 5

Scientific Management

• Frank Gilbreth (1868-1924) and Lillian Gibreth (1878-1972)-use of motion pictures to study hand-and-body movements-Motion analysis is used today primarily to establish job performance standards. Each movement or motion that is used to do a job is studied to determine how much time and movement takes and how necessary it is performing the job. Inefficient or unnecessary motions are pinpointed and eliminated. (refer table 2.1 Sample variables considered in analyzing motions pg.57 Modern Management Concepts and skills 11th edition Samuel C. Certo & S. Trevis Certo)

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Scientific Management

Can you give an example of Time and Motion Study of today?

Answer: Improve traffic lights sequence during rush hour traffic!

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Gilbreth Time and Motion Study in Bricklaying.mp4

Scientific Management

• Henry L. Gantt (1861-1919)• Scheduling Innovation The Gantt Chart-this chart provides managers with an easily understood summary of what work was scheduled for specific time periods, how much of this work has been completed, and by whom it was done. Eg: MacSchedule a special computer software to help managers more efficiently and effectively apply the concept of Gantt Chart today.

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Scientific Management

• A Gantt chart is a common tool for project planning and keeping track of the status of individual tasks within a project.

• Excel is a popular tool for creating Gantt charts, but for more advanced project management activities, you may need a tool such as Microsoft Project or a project management add-in for Excel

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General Administrative Theorists

• Henri Fayol (1841-1925)– concerned with making the overall organization

more effective– developed theories of what constituted good

management practice• proposed a universal set of management

functions• published principles of management

– fundamental, teachable rules of management

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EXHIBIT : FAYOL’S 14 PRINCIPLES OF MANAGEMENT

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EXHIBIT : FAYOL’S 14 PRINCIPLES OF MANAGEMENT

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ACTIVITY….

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1. Explain using keywords in a mind map the theories implemented by Frederick Taylor, Frank Gilbreth &Henry L Gantt (10mins)

2.Use a mind map to draw our the 14 principles of management introduced by Henri Fayol. (10mins)

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THE BEHAVIORAL APPROACH

a. To management calls for a broad understanding of the ways in which different people behave, respond, and interact with one another in work situations like this one.

b. The Hawthorne Studies- a series of studies conducted between 1924 and 1932, which investigated the behavior and attitudes of workers at the

Hawthorne (Chicago) Works of the Western Electric Company. Two phases of Hawthorne Studies as:-

i. The Relay Assembly Test Room Experiments?

ii. The bank Wiring Observation Room Experiment?

sources www.google.com

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THE MANAGEMENT SCIENCE APPROACH

Operations Research (Management Science)-Use of quantitative techniques to improve decision making:-

• applications of statistics.• optimization models.• computer simulations of management

activities.-Linear programming - improves resource allocation decisions.-Critical-path scheduling analysis - improves work scheduling.

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EXAMPLE

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Linear Responsibility Chart for Asia Water Exhibition 2012

  WBS/Activity Organizer Sales CS Finance Admin/HR Engineering Field Service Q/A

 

                   

1Booth booking and and e manual forms N I,P O N, A        

2Brochures   I, O,P N N      

3Souveneirs   I, P,O   N,I      

4Wet Demo Unit   O,I N     I,P    

5 Invitation Cards B I, O,P          

6Exhibitor Tags B N P,O          

7Name Cards   B,I I   P      

8Bunting   I P          

9 Stationery, Tools & Packing Materials   I P,O   N,I I    

10Electrical Tools for Demo Unit    N       P    

11Time Table for Exhibition   I,P O N N N N  

12Set Up B I,N I,P I,O, N N N  

13Water Dispenser Bottles for Demo Unit   I,O I   N P    

14Pack Down   N P       N  

15                  

16                  

17                  

18                  

19                  

20                  

A = Approval P = Primary Responsibility R = Review N = NotificationO = Output I = Input B = Initiation

THE CONTINGENCY APPROACH

-The contingency approach to management emphasizes that what managers do in practice depends on, or its contingent upon, a given set of circumtances-a situation.

- “If – then” relationships.- Eg:- If a manger has a group of inexperienced

subordinates, then the contingency approach would recommend that he or she lead in a different fashion than if the subordinates were experienced.-The main challenges of using the contingency approach are the following:-a. Perceiving organizational situations as they

actually exist.b. Choosing the management tactics best suited

those situations.c. Competently implementing those tactics.

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THE SYSTEM APPROACH-A system is a number of interdependent parts functioning as a whole for some purpose.Types of systemsa. Closed systems - are not influenced by, and do not interact with, their

environments.b. Opened systems - is continually interacting with its environment.Systems and “Wholeness” Six guidelines for anyone conducting system analysis by L. Thomas

Hopkins.1) Wholeness main focus of the analysis and parts receiving secondary attention.2) Integration3) Modifications in each part should be weighed in relation to possible effects on every other part.4) Each part has some role to perform so that the whole can accomplish its purpose.5) The nature of the part and its function is determined by its position in the whole.6) All analysis starts with the existence of the whole. the parts and their interrelationships should then evolve to best suit the purpose of the whole.

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THE SYSTEM APPROACH

The open management system

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THE SYSTEM APPROACHInformation for Management System Analysis

Triangular management model-pg 68 Modern Management Concepts and Skills 11th Edition Samuel C. Certo & S. Trevis Certo 2009.

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LEARNING ORGANIZATION: A NEW APPROACH• A learning organization is an organization that does

well in creating, acquiring, and transferring knowledge, and in modifying behavior to reflect new knowledge.

• It is emphasizes systematic problem solving, experimenting with new ideas, learning from experience and past history, learning from experiences of others, and transferring knowledge rapidly throughout the organizations.

• Mangers attempting to build a learning organization must create an environment conducive to learning and encourage the exchange of information among all of organization members. Honda, Corning and General Electrics are successful learning organizations.

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LEARNING ORGANIZATION: A NEW APPROACH

Peter Senge The Fifth Discipline: The Art and Practice of The Learning Organization recommend five features building learning organizations are:-

i. Systems thinkingii. Shared visioniii.Challenging of mental modelsiv. Team learningv. Personal mastery

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LEARNING ORGANIZATION: A NEW APPROACH

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funny work stress.mp4

QUESTION:

What are the 5 different approaches management?

Answer: (Discuss in the facebook forum)

Who are the three important people who implemented scientific management theories?

Answer: (Discuss in the facebook forum.)

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a) Any feedback, suggestions and comments, please put your query at face book to be share among team members.

Thank you.

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