management - yesterday and today : lecture 2

MANAGEMENT - PAST to PRESENT

Lecture 2: Management Yesterday and Today SHAYAA OTHMAN MBA [Distinction]Academic Fellow & Executive Director of Global Center of [email protected] Centre for Graduate StudiesINSANIAH University College, Kedah MalaysiaTel +604 732 0163 Fax +604 732 0164 www.insaniah.edu.my

ORGANIZATION BUSINESS MANAGEMENTLecture 2: Management Yesterday and Today

Historical Background of ManagementScientific ManagementGeneral Administrative TheoryQuantitative Approach to ManagementToward Understanding Organizational BehaviorThe Systems ApproachThe Contingency Approach *****Current Trends and Issues *****MBA Muamalah -Organizational Business Management by SHAYA'A OTHMAN

2MBA Muamalah - Organizational Business Management By SHAYA'A OTHMAN

MAB OBM LECTURE 2 : MANAGEMENT - YESTERDAY & TODAY

ManagementAPPROACHES

1. CLASSICAL 2.ORGANIZATIONAL BEHAVIOUR/ HUMAN RESOURCE

4. SYSTEMS/MODERN

1. Management Science2. Operation Research3. QUANTATIVE

GlobalizationWork Force DiversityWorkplace SpiritualityEntrepreneurship E-Business WorldNeed For Innovation & Flexibility.Learning Organization & Knowledge Management5. Currents Trends and IssuesMBA Muamalah -Organizational Business Management by SHAYA'A OTHMAN

1856-19151900s1900s

MBA Muamalah -Organizational Business Management by SHAYA'A OTHMANCLASSICAL APPROACHES1800s -1900s

MBA Muamalah -Organizational Business Management by SHAYA'A OTHMAN

. Division of Work. The intent of division of work is to produce more and better work for the same effort. Specialization is the most efficient way to use human effort.Authority and Responsibility. Authority is the right to give orders and obtain obedience, and responsibility is a corollary of authority. The two types of authority are official authority, which is the authority of command, and personal authority, which is the authority of the individual manager.Discipline. Obedience to organizational rules and employment agreement is necessary. The best way to have good superiors and clear and fair rules and agreements is to apply sanctions and penalties judiciously.Unity of Command. There should be one and only one boss for each individual employee.Unity of Direction. All units in the organization should be moving toward the same objectives through coordinated and focused effort.Subordination of Individual Interest to General Interest. The interests of the organization should take priority over the interests of any one individual employee.Remuneration of Employees. The overall pay and compensation for employees should be fair to both employees and the organization.Centralization. There is a need to balance subordinate involvement through decentralization with managers retention of final authority through centralization.Scalar Chain. Organizations should have a chain of authority and communication that runs from the top to the bottom and should be followed by managers and subordinates.Order. People and materials must be in suitable places at the appropriate time for maximum efficiency.Equity. Good sense and experience are needed to ensure fairness to all employees, who should be treated as equally as possible.Stability of Personnel. Employee turnover should be minimized to maintain organizational efficiency.Initiative. Workers should be encouraged to develop and carry out their plans for improvements.Esprit de Corps. Management should promote a team spirit of unity and harmony among employees.

Fayols 14 PrinciplesMBA Muamalah -Organizational Business Management by SHAYA'A OTHMAN

SCIENTIFIC MANAGEMENT[Taylorss 4 Principles of Management]GENERAL ADMINISTRATIVE THEORY[Fayols 14 Principles of Management]Develop science for each element of an individuals work which replace the old rule-of-thumb method. Scientifically select and then train, teach & develop the worker.Cooperate with workers that all works are done in accordance with principle of science that has been developed.Divide work & responsibility almost equally between management & workers.Division of Works Specialization increases output.Authority Managers must be able to give orders.Discipline respect and obey rulesUnity of command receive orders from one superior.Unity of Direction single pelan of actionSubordination of individual interests to general interest. interest of individual should not take precedence of organizational interest.Remuneration workers must be paid accordingly. Centralization degree of subordinate involved in decision making.Scalar chain line of authority from top to bottom ranks.Order - people and materials should be in the right place and time.Equity Managers should be kind and fairStability of tenure of personnel provide orderly personnel planning.Initiative - employees are allowed to originate & carry out pelan at high levels of effortEsprit de corps promoting team spirit


OB or HR ApproachOB The Field of Study concerned with the actions [behavior] of people at work

1927 Harvard Professor Elton Mayo engaged by Western Electric COHawthorne Studies 1924-1930 by Western Electric Co.

1960sMBA Muamalah -Organizational Business Management by SHAYA'A OTHMAN

Content Theories of Motivation1. Maslows Hierarchy of Human Needs


Douglas McGregor Theory X / Theory Y1906 1964

Douglas McGregor was an American social psychologist best known for Theory X and Theory Y; opposing assumptions about human behavior behind every management decision or action.Building on Abraham Maslows hierarchy of needs, McGregor set out two opposing assumptions about human nature and motivation.

Theory XPeople are lazy, dislike work and need threat of job loss and financial incentives to work hard. They need direction and control and cannot take responsibility.

Theory YPeople need to work, actively seek responsibility, and are generally creative and resourceful. They will be self-directed to achieve objectives that meet both organizational and individual goals. Intellectual potential needs to be utilized. Douglas McGregor said that management style and decision-making depends on which theory management believes applies to their staff. Theory X was adopted by traditional Taylor-ist management, and Theory Y by more modern management thinkers, following Elton Mayos human relations approach.


MBA Muamalah - Organizational Business Management By SHAYA'A OTHMAN10

THE MANAGEMENT - SYSTEMS/MODERN APPROACH MBA Muamalah -Organizational Business Management by SHAYA'A OTHMAN

Simple Bank System and its Components


Globalization Work Force Diversity Workplace Spirituality *****Entrepreneurship ***E-Business World *****Need For Innovation & Flexibility. Learning Organization & Knowledge Management

Currents Trends and IssuesMBA Muamalah -Organizational Business Management by SHAYA'A OTHMAN

CONCEPT SUMMARY: Classical TheoriesKey NotionRationaleFocusScientific ManagementOne best way to do each jobJob levelAdministrative PrinciplesOne best way to put an organization togetherOrganizational levelBureaucratic ApproachRational and impersonal organizational arrangementsOrganizational level

CONCEPT SUMMARY: Modern Management TheoriesKey NotionRationaleSystemsOrganizations must be thought of as open systems.

Organizational BehaviorsOrganizations must be designed to consider a variety of individual needs.Management Science*****Quantitative tools may be useful in analyzing managerial problems.ContingenciesManagerial actions must be set up on a contingent basis.




SUMMARYManagement Approaches Theories: [Classical & Modern]




LET US QUESTION OURSELVES

Globalization, workforce diversity, and workplace spirituality, are the current issues which are very important for a company to be able to be competitive and sustainable.

Discuss the competitive advantages to your company or an organization which you are working now, if all these 3 issues are being addressed accordingly by the management.









SHAYAA OTHMAN, MBA [Distinction] from University of Keele, Staffordshire, England UK, and qualified with professional Qualification of Associate Institute of Statisticians, [London]

He had vast working experiences, in private and public sectors, both at national and international levels: CEO INTERGEO Asia Pacific a Member Company of INTERGEO Environmental Technology Ltd Austria [2002-2005]; Sr. General Manager [Project & Strategic Planning Division], Hong Leong Group, Malaysia [1994-1997]; Deputy Director General of Fisheries Development Authority Malaysia [1992-1994]; and Chairman of Technical Advisory Council of INFOFISH Regional Intergovernmental Agency of United Nation, [1988-1989] .Currently he is an academician, working as Academic Fellow at INSANIAH University College, Kedah, Malaysia; and Executive Director of INSANIAH Global Center of Excellence; Lecturer [part-time] at Center of Graduate Studies, [Selangor International Islamic University College, Malaysia), in Organizational Business Management; and Adjunct Professor at Europe International Islamic University [Turkish Branch] in the field of Management

management - yesterday and today : lecture 2

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