Slide 1

Development of The Management Theories Sl. NoNameRollBatch01H M Saiful Islam325249th02Md. Al Amin322849th03Md. Enam Uddin323149th04Rounak Rahma324149th05Arafat Hossain325049th

Presented By:World University of Bangladesh1WUB.SI.49

Presented To:B. M. SiddiqueAsst. ProfessorDepartment of Business Administration World University of Bangladesh 2WUB.SI.49

Learning Objectives (Continued)You should be able to:Discuss managements relationship to other academic fields of studyExplain the value of studying management historyIdentify some major pre-twentieth-century contributions to managementSummarize the contributions of the scientific management advocatesDescribe the contributions of the general administrative theorists

3WUB.SI.49

2

Learning ObjectivesYou should be able to:Summarize the quantitative approach to managementDescribe the contributions of the early organizational behaviour advocatesExplain the importance of the Hawthorne Studies to managementDescribe the effects of: globalization, workforce diversity, entrepreneurship, e-business, need for innovation and flexibility, quality management, learning organizations, and knowledge management

4WUB.SI.49

3

Managements connection to other fields of studyAcademic Disciplines that Affected ManagementAnthropology - work on cultures and social environmentsEconomics - concern about the allocation and distribution of scarce resourcesPhilosophy - examines the nature of thingsPolitical science - effect of political environment on individuals and groupsPsychology - seeks to measure, explain, and change human behaviorSociology - studies people in relation to their fellow human beings

5WUB.SI.49

4

Development of major management theoriesHistoricalBackgroundScientificManagementGeneralAdministrativeTheoristsQuantitativeApproachManagement Theories

IndustrialRevolution

Adam Smith

Early Advocates

Hawthorne Studies

OrganizationalBehaviour

Early Examplesof Management6WUB.SI.49

5

The Time Line of Management Theory

7WUB.SI.49

Historical background of managementOrganizations Have Existed for Thousands of YearsSignificant Pre-Twentieth-Century EventsAdam Smithdivision of labour - breakdown of jobs into narrow and repetitive tasks increased productivityIndustrial Revolution substitution of machine power for human powerlarge organizations required formal management

8WUB.SI.49

6

Scientific Management TheoryEvolution of Modern ManagementBegan in the industrial revolution in the late 19th century as:Managers of organizations began seeking ways to better satisfy customer needs.Large-scale mechanized manufacturing began to supplanting small-scale craft production in the ways in which goods were produced.Social problems developed in the large groups of workers employed under the factory system.Managers began to focus on increasing the efficiency of the worker-task mix.9WUB.SI.49

9

job specialization and the division of laborAdam Smith (18th century economist)Observed that firms manufactured pins in one of two different ways:Craft-styleeach worker did all steps. Productioneach worker specialized in one step.Realized that job specialization resulted in much higher efficiency and productivityBreaking down the total job allowed for the division of labor in which workers became very skilled at their specific tasks.10WUB.SI.49

10

F.W. Taylor and Scientific ManagementScientific ManagementThe systematic study of the relationships between people and tasks for the purpose of redesigning the work process for higher efficiency.Defined by Frederick Taylor in the late 1800s to replace informal rule of thumb knowledge.Taylor sought to reduce the time a worker spent on each task by optimizing the way the task was done.11WUB.SI.49

11

Four Principles of Scientific ManagementPrinciples to increase efficiency:Study the ways jobs are performed now and determine new ways to do them.Gather detailed time and motion information.Try different methods to see which is best.Codify the new methods into rules.Teach to all workers the new method.Select workers whose skills match the rules.Establish fair levels of performance and pay a premium for higher performance.Workers should benefit from higher output12WUB.SI.49

12

Problems with Scientific ManagementManagers frequently implemented only the increased output side of Taylors plan.Workers did not share in the increased output.Specialized jobs became very boring, dull.Workers ended up distrusting the Scientific Management method.Workers could purposely under-perform.Management responded with increased use of machines and conveyors belts.13WUB.SI.49

13

Frank and Lillian GilbrethRefined Taylors work and made many improvements to the methodologies of time and motion studies.Time and motion studiesBreaking up each job action into its components.Finding better ways to perform the action.Reorganizing each job action to be more efficient.Also studied worker-related fatigue problems caused by lighting, heating, and the design of tools and machines.14WUB.SI.49

14

Administrative Management TheoryAdministrative ManagementThe study of how to create an organizational structure that leads to high efficiency and effectiveness.Max WeberDeveloped the concept of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness. 15WUB.SI.49

15

Webers Principles of Bureaucracy16WUB.SI.49

16

Webers Five Principles of BureaucracyAuthority is the power to hold people accountable for their actions.Positions in the firm should be held based on performance, not social contacts.Position duties are clearly identified so that people know what is expected of them.Lines of authority should be clearly identified such that workers know who reports to who.Rules, standard operating procedures (SOPs), and norms guide the firms operations.17WUB.SI.49

17

Fayols Principles of ManagementDivision of Labor: allows for job specialization. Fayol noted jobs can have too much specialization leading to poor quality and worker dissatisfaction.Authority and ResponsibilityFayol included both formal and informal authority resulting from special expertise.Unity of CommandEmployees should have only one boss.18WUB.SI.49

18

Fayols Principles of Management (contd)Line of AuthorityA clear chain of command from top to bottom of the firm.CentralizationThe degree to which authority rests at the top of the organization.Unity of DirectionA single plan of action to guide the organization.19WUB.SI.49

19

Fayols Principles of Management (contd)EquityThe provision of justice and the fair and impartial treatment of all employees.OrderThe arrangement of employees where they will be of the most value to the organization and to provide career opportunities.InitiativeThe fostering of creativity and innovation by encouraging employees to act on their own.20WUB.SI.49

20

Fayols Principles of Management (contd)DisciplineObedient, applied, respectful employees are necessary for the organization to function.Remuneration of PersonnelAn equitable uniform payment system that motivates contributes to organizational success.Stability of Tenure of PersonnelLong-term employment is important for the development of skills that improve the organizations performance.21WUB.SI.49

21

Fayols Principles of Management (contd)Subordination of Individual Interest to the Common InterestThe interest of the organization takes precedence over that of the individual employee.Esprit de corpsComradeship, shared enthusiasm foster devotion to the common cause (organization).22WUB.SI.49

22

Behavioral Management TheoryBehavioral ManagementThe 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.Focuses on the way a manager should personally manage to motivate employees.23WUB.SI.49

23

Behavioral ManagementMary Parker FollettAn influential leader in early managerial theoryHeld a horizontal view of power and authority in organizationsSuggested workers help in analyzing their jobs for improvementsthe worker knows the best way to improve the job.If workers have relevant knowledge of the task, then they should control the task.24WUB.SI.49

24

PRINCIPLES OF MANAGEMENT

25WUB.SI.49

10

IDEAL BUREAUCRACY

26WUB.SI.49

12

Quantitative approach to managementOperations Research (Management Science)Use of quantitative techniques to improve decision makingapplications of statisticsoptimization modelscomputer simulations of management activitiesLinear programming - improves resource allocation decisionsCritical-path scheduling analysis - improves work scheduling

27WUB.SI.49

13

Toward understanding organizational behaviorOrganizational BehaviorStudy of the actions of people at workHawthorne StudiesStarted in 1924 at Western Electric CompanyElton Mayo - studies of job designChanged the dominant view that employees were no different from any other machines

28WUB.SI.49

14

Early advocates of ob

29WUB.SI.49

15

Current trends and issuesGlobalizationAll organizations are faced with the opportunities and challenges of operating in a global marketWorkforce DiversityHeterogeneous workforce in terms of gender, race, ethnicity, age, and other characteristics that reflect differencesworkforce is getting olderhigh degree of immigration in Canada

30WUB.SI.49

16

Current trends and issues (continued)EntrepreneurshipThree important themespursuit of opportunities - capitalizing on environmental change to create valueInnovation and uniqueness - introducing new approaches to satisfy unfulfilled market needsgrowth - not content to remain smallWill continue to be important in all societiesWill influence profit and not-for-profit organizations

31WUB.SI.49

17

Current trends and issuesManaging in an E-Business WorldE-business - comprehensive term describing the way an organization does its work by using electronic (Internet-based) linkages with key constituenciesE-business - any form of business exchange or transaction in which parties interact electronicallyIntranet - an internal organizational communication system that uses Internet technology and is accessible only by organizational employees

32WUB.SI.49

18

Take Home Message33WUB.SI.49Without a good management, it is impossible to reach the specific goal.Management is not only more complex than we think, but it is more complex than we can think.On other hand, It is more flexible, if manage a efficient/ skilled manager.

Thank You34WUB.SI.49