Management

Business Management

Unit Objectives

Define Management

Identify the functions of a manager

Analyze different levels of management

Determine the skills of a manager

1

2

3

4

5

Analyze the history of management

Management is the process of accomplishing the goals of an organization through the effective use of people and other resources.

What is Management?

Businesses need to determine whether they are doing the right things and doing the right things well!

1.Effectiveness: making the right decisions regarding what products and services to offer customers and how to produce and deliver them (quality)

2.Efficiency: producing the needed goods or services quickly at low cost (increased output & productivity)

Companies that provide products or services at the lowest cost while maintaining desired quality will

succeed!Good managers focus on both!

History of Management

1880 Scientific

Management

1929 Taylorism

1932 Hawthorne

Studies

1946 Organizationa

l Development

1954 Hierarchy of

Needs

1960 Theory X Theory Y

1978 Excellence

1990 Learning Organization

2000 Business Process

Management

Frederick Taylor decides to time each and every worker at the Midvale Steel Company. His view of the future becomes highly accurate:

In scientific management the managers were elevated while the workers' roles were negated.

"Science, not rule of thumb," said Taylor.

The decisions of supervisors, based upon experience and intuition, were no longer important. Employees were not allowed to have ideas of responsibility.

1880 Scientific Management1929 Taylorism

MAJOR CONTRIBUTORS FREDERICK WINSLOW TAYLOR (1856-1915)

FRANK GILBERTH (1868-1924) & LILLIAN GILBERTH(1878-1972)

Taylor insisted that management itself would have to change and further, that the manner

of change could be determined only by scientific study.

Hence, term ‘Scientific Management’ evolved.

Taylor suggested that decisions based on rules of thumb and tradition be replaced with

precise procedures developed after careful study of individual situations

SCIENTIFIC MANAGEMENT

FRANK B GILBRETH & LILLIAN M GILBRETH

Followers of Taylor

Frank B Gilbreth (1868-1924) pioneered time and motion study and arrived at many of his management techniques independently of Taylor

.

He stressed efficiency and was known for his quest for “one best way” to do work.

His work had great impact on medical surgery by drastically reducing the time patients spent on

operating table.

He invented a device – ‘MICRO CHRONOMETER’ in order to record workers movement and the

amount of time spend to done a job

On the basis of their study and experiments Frank give shape to 17 principles known as

“Therblig”

Criticism

Did not appreciate the social context of work and higher needs of workers.

Did not acknowledge variance among individuals.

Tended to regard workers as uninformed and ignored their ideas

for suggestions

Between 1924 and 1933, research teams from Harvard University conducted field studies on worker productivity at the Western Electric Hawthorne plant near Chicago

  The experiments initially concentrated on the relationship

between productivity and work place lighting. To the researchers' surprise, both more and less light created higher productivity levels.

Sociologist Mayo joined the experiments in early 1928 and realized that the workers chosen for the experiment were accorded higher status by their co-workers. The increased performance was due to their increased motivation.

1932 Hawthorne studies

Henri Fayol

Father of Organizational Development

Viewed management as a profession that can be trained and developed.

First one to analyze the functions of management

o Henri Fayol(1841-1925)

(B) Fayol described management as a scientific process built up of five immutable elements: Planning, Organizing, Commanding, Coordinating, Controlling

Henri Fayol contributed to this movement by developing the 14 management principles and management functions.

These principals are still used today

Organizational Development

Fayol’s Principles Fayol’s Principles Henri Fayol, developed a set of 14 principles:1. Division of Labour: work should be divided among

individuals based upon the skills of the workforceJob specialization leads to increased productivity

2. Authority and Responsibility: managers must be able to give orders and take responsibility of those orders

3. Discipline: employees must obey and respect the rules the govern the organization.

4. Scalar Chain: a clear chain from top to bottom of the firm

5. Centralization: the degree to which authority rests at the very top

Fayol’s PrinciplesFayol’s Principles

6. Unity of Direction: One plan of action to guide the organization.

7. Unity of Command: Employees should have only one boss.

8. Order: Each employee is put where they have the most value.

9. Initiative: Encourage innovation.

10. Equity: Treat all employees fairly in justice and respect.

Fayol’s PrinciplesFayol’s Principles

11. Remuneration of Personnel: The payment system contributes to success.

12. Stability of Tenure: Long-term employment is important.

13. General interest over individual interest: The organization takes precedence over the individual.

14. Esprit de corps: ‘Union is strength’- refers to harmony & mutual understanding among the members of an organization.

CLASSICAL APPROACH SCIENTIFIC MANAGEMENT THEORY

FREDERICK W.TAYLOR (1856-1915) - FATHER OF SCIENTIFIC MANAGEMENT

ANALYSED MANAGEMENT SCIENTIFICALLY TO FIND OUT THE MOST EFFICENT WAY TO DO A JOB - “ONE BEST WAY” TO DO THE JOB.

ORGANIZATIONAL DEVELOPMENT MANAGEMENT THEORY

HENRI FAYOL (1841- 1925) - FATHER OF MODERN MANAGEMENT

ANALYSED MANAGEMENT AS A UNIVERSAL PROCESS OF PLANNING,ORGANIZING, COMMANDING,COORDINATI-NG& CONTROLLING. ALSO INTRODUCED FOURTEEN PRINCIPLES OF MANAGEMENT.

Taylor’s viewed management from the bottom up◦ Increasing productivity of the individual worker

Fayol viewed management from the top down◦ Creating guidelines for managing complex

organizations

Taylor Vs. Fayol

Business process management (BPM) is a systematic approach to making an organization's workflow more effective, more efficient and more capable of adapting to an ever-changing environment. A business process is an activity or set of activities that will accomplish a specific organizational goal.

Business Process Management BPM

Management Basics

Top Managers

Middle Managers

First Line Managers

Operational Employees

Managerial Levels

Technical •Proficiency in a specific activity•Hard Skills

Interpersonal •Human Skills

Conceptual •See the organization as a total entity

Diagnostic •Investigate problems

Political •Effective to obtain power and prevent others from taking it away

Five Key Managerial Skills

First Line ManagementTechnical skills are most important

for first line employees

Conceptual

Human

Technical

Top ManagementConceptual skills, setting the

strategic direction of the organization are most important to

top management

Technical

Human

Conceptual

Physical Resources Human Resources

Financial Resources Information Resources

Resources used by Managers

Functional Managers- supervise the work of employees engaged in specialized activities, such as accounting, sales or information systems

General Managers- responsible for the work of several different groups that perform a variety of functions.

Types of Managers

Planning Organizing Leading Controlling

4 Functions of a Manager