Zainab Shafiq Management Notes Chapter 1 Management History Module

Management History Module

Early Management
Example of Egypt pyramids explains in a good way that why managers were important, they were the ones to make sure
workers get their work done impose some controls to ensure that everything was done as planned.

Adam Smith published THE WEALTH OF NATIONS (1776) Argued economic advantages that
organizations would gain from division of labor increases productivity by increasing worker’s skill and
dexterity,, saving time lost in changing tasks and creating labor saving inventions and machinery

 (Breaking down jobs into narrow and repetitive tasks)

10 men can produce 48k pins in a day but a single cannot even make 10

 “When machine power was substituted for human power it was known as industrial revolution”
 Became economical to manufacture goods in factories than homes
 Factories required someone to ensure the material is enough to make hands on products and to
assign people tasks, direct daily activities, it was manager who needed formal theories to guide
and run organizations. Concept was not there till 1900’s
Major
approaches of
Management

HISTORICAL Classic

2. Classic Approach
BACKGROUND Approach

Scientific
Early Example Management
of Mnaagement
Scientific: Focuses on the individual worker’s productivity
General
Administrative: Focuses on the functions of management Management
Adam smith
Bureaucratic: Focuses on the overall organizational Systems
Definition: Industrial
Revolution
The classical approach to management focuses on
centralized authority, labor specialization and incentives Quantitative
Approach
to optimize productivity in an organization and, in turn,
Early
drive profits. Workplaces are segregated into three levels of Advocate

authority: business leaders or top-level management, middle Hawthorne

management and supervisors. Important contributors: Studies

Organizational Contemporar
Behaviour y Approach

Systems
Approach

Contigency
Approach

Behavioral
Approach
Zainab Shafiq Management Notes Chapter 1 Management History Module

Fredrick Taylor Frank Gilbreth

Contribution in: Scientific Management Administrative Principles
Theory: Theory of Scientific Management by Studied work to eliminate inefficient hand and body
Frederick (Principles of Scientific Management movement. Properly researched and experiment. Ran
Content). That defined the ‘one best way for a job to household as scientific management (12 kids)
be done’. His experiences taught him to define clear Frank known for his bricklaying experiments .
guideline for improving production efficiency. His best
effort was ‘’the pig iron experiment’’.
His 4 principles:  Invented a device called micro chronometer,
1. Develop a science 2. Select and then train, recorded a worker’s hands and body motion
teach and develop worker 3. Cooperate and amount of time spent in doing each
with worker to ensure ALL work is done 4. motion
Divide work+ responsibility equally btw  Also devised a scheme to label 17 basic
management plus workers hand motions which they called therbligs

Conclusion: Was able to define one best way for doing Gave more precise way of analyzing a worker’s exact
each job. Achieved consistent productivity hand movement
improvements in range of 200%. Was then known as
‘Father of Scientific management’
Prominent followers: Frank and Lillian gilberth

HOW TODAY’S MANAGER USE SCIENTIFIC MANAGEMENT:

Guidelines and techniques for improving productivity still used

When they analyze basic work tasks that must be performed, use time and motion study to eliminate wasted
motions and hire best qualified workers
Adaptive robotics can help boost worker efficiency

By freeing workers from repetitive tasks, study revealed that they can complete essential tasks requiring manual
dexterity

2.2 GENERAL ADMINISTRATIVE THEORY

Focuses on what managers do and what constituted good management practice.

Fayol introduced 5 Management functions: Planning, Organizing, Commanding, Coordinating and controlling
He described the practice of management as something distinct from accounting, finance, production and
distribution
Principles of Management: Fundamental rules of management that could be applied to all organizational situations
Bureaucracy: Max Weber, German sociologist studied organizations (1900’s).
He developed a THEORY: Theory of authority structures and relates based on an ideal type of organization he
called Bureaucracy – Form of organization characterized by Division of labor, a clearly defined hierarchy, detailed
rules and regulations and impersonal relationships
 He realized this ideal bureaucracy does not exist in reality
 Instead intended it as basis about work being done in large groups
 His theory became structural design for many of today’s large organizations
 Emphasized rationality, predictability, Impersonally, technical competence, authoritarianism as Scientific
management
Zainab Shafiq Management Notes Chapter 1 Management History Module

14 PRINCIPLES OF MANAGEMENT
1. Division of Work- (specializing increases output by making worker more efficient)
Segregating work in the workforce amongst the worker will enhance the quality of the product.
Similarly, he also concluded that the division of work improves the productivity, accuracy and speed
of the workers.
2. Authority and Responsibility- (Must be able to give orders, authority gives then right)
Authority facilitates the management to work efficiently, and responsibility makes them responsible
for the work done under their guidance or leadership.
2. Discipline-(Workers must obey, respect organization rules)
Good performance and sensible interrelation make the management job easy and comprehensive.
Employees’ good behavior also helps them smoothly build and progress in their professional
careers.
4. Unity of Command-(Receive orders from single boss)
This means an employee should have only one boss and follow his command. If an employee has to
follow more than one boss, there begins a conflict of interest and can create confusion.
5. Unity of Direction- (Organization-single plan of action to guide managers, workers)
Whoever is engaged in the same activity should have a unified goal. This means all the person
working in a company should have one goal and motive which will make the work easier and
achieve the set goal easily.
6. Subordination of Individual Interest-(Worker’s interest shouldn’t take over organization interest)
This indicates a company should work unitedly towards the interest of a company rather than
personal interest. Be subordinate to the purposes of an organization. This refers to the whole chain
of command in a company.
7. Remuneration- (Must be paid fair wage in services)
This plays an important role in motivating the workers of a company. Remuneration can be monetary
or non-monetary. However, it should be according to an individual’s efforts they have made.
8. Centralization-
In any company, the management or any authority responsible for the decision-making process
should be neutral. However, this depends on the size of an organization. Henri Fayol stressed on the
point that there should be a balance between the hierarchy and division of power.
9. Scalar Chain-(Line of chain from top to lowest rank management)
Fayol on this principle highlights that the hierarchy steps should be from the top to the lowest. This is
necessary so that every employee knows their immediate senior also they should be able to contact
any, if needed.
10. Order-(People/Material in right place at right time)
A company should maintain a well-defined work order to have a favorable work culture. The positive
atmosphere in the workplace will boost more positive productivity.
11. Equity-(Manager kind and fair to workers)
Zainab Shafiq Management Notes Chapter 1 Management History Module

All employees should be treated equally and respectfully. It’s the responsibility of a manager that no
employees face discrimination.
12. Stability-
An employee delivers the best if they feel secure in their job. It is the duty of the management to
offer job security to their employees.
13. Initiative-
The management should support and encourage the employees to take initiatives in an organization.
It will help them to increase their interest and make then worth.
14. Esprit de Corps- (Promote team spirit to build harmony)
It is the responsibility of the management to motivate their employees and be supportive of each
other regularly. Developing trust and mutual understanding will lead to a positive outcome and work
environment.

Conclusion:
This 14 principles of management are used to manage an organization and are beneficial for
prediction, planning, decision-making, organization and process management, control and
coordination.

HOW TODAY MANAGER IS USING GENERAL

ADMINITRATIVE THEORY?

3. BEHAVIORAL APPROACH:
 Zainab Shafiq Management Notes Chapter 1 Management History Module

Field of study that researches that actions (Behavior) of people at work is called organizational behavior

What managers do? Mostly working with team, leading, motivating, managing conflict

Hawthorne studies: Series of

studies during the 1920’s and
1930’s that provided new
insights into individual and
group behavior

The Hawthorne studies were conducted on workers at the Hawthorne plant of the Western Electric
Company by Elton Mayo and Fritz Roethlisberger in the 1920s. The Hawthorne studies were part of a refocus on
managerial strategy incorporating the socio-psychological aspects of human behavior in organizations.
Wanted to examine effect of various lighting levels on worker productivity.
It provides additional insight into the way the studies were conducted and how they changed employers’ views on
worker motivation.

The studies originally looked into whether workers were more responsive and worked more efficiently under certain
environmental conditions, such as improved lighting. The results were surprising: Mayo and Roethlisberger found
that workers were more responsive to social factors—such as the people they worked with on a team and the amount
of interest their manager had in their work—than the factors (lighting, etc.) the researchers had gone in to inspect.

The Hawthorne studies discovered that workers were highly responsive to additional attention from their managers
and the feeling that their managers actually cared about, and were interested in, their work. The studies also
found that although financial motives are important, social issues are equally important factors in worker
productivity.

Intangible Motivators
Changing a variable usually increased productivity, even if the variable was just a change back to the original
condition. Researchers concluded that the employees worked harder because they thought they were being
monitored individually. Researchers hypothesized that choosing one’s own coworkers, working as a group, being
treated as special (as evidenced by working in a separate room), and having a sympathetic supervisor were the real
reasons for the productivity increase.
The Hawthorne studies showed that people’s work performance is dependent on social issues and job satisfaction,
and that monetary incentives and good working conditions are generally less important in improving employee
productivity than meeting individuals’ need and desire to belong to a group and be included in decision making and
work.
 
 HOW TODAY’S MANAGER USE BEHAVIORAL APPROACH.
4. QUANTITATIVE APPROACH
 Zainab Shafiq Management Notes Chapter 1 Management History Module

Based on research in space time geometry, one airline innovated a unique boarding process called REVERSE
PYRAMID (Management science)
 Improves decision making, this approach is also known as management science.
 It involves applying stats, optimization models, info models, computer stimulations, and other quantitative
techniques to management activities.
 Linear programming for instance is a technique that managers use to improve resource allocation decision.
Work scheduling can be efficient more as a result of critical path scheduling analysis.

TQM TOTAL QUALITY MANAGEMENT

Management philosophy devoted to continual improvement and responding to customer needs and
expectations. (Standardization, consistent improvement)

Term customer includes anyone who interacts with organization’s products or services

Continual improvement not possible without accurate measurements which require stats techniques
that measure critical variable in organization work process

What is Quality Management?

1.
Customer-focused: (Range and choices of customer)
 the customer ultimately determines the level of quality.—training employees, integrating quality into the design
process, or upgrading computers or software—the customer determines whether the efforts were worthwhile.
2. Total employee involvement: Total employee commitment can only be obtained after fear has been driven from
the workplace, when empowerment has occurred, and when management has provided the proper environment.
High-performance work systems integrate continuous improvement efforts with normal business operations. Self-
managed work teams are one form of empowerment.
3. Process-centered: A process is a series of steps that take inputs from suppliers (internal or external) and
transforms them into outputs that are delivered to customers (internal or external). The steps required to carry out
the process are defined, and performance measures are continuously monitored in order to detect unexpected
variation.
4. Improvement in the quality of everything the organization does (hygienically)
5. Accurate measurement
6. Empowerment of employees (Loyal employees given shares, decision making, task allotment and incentive)
7. Strategic and systematic approach Achieving an organization’s vision, mission, and goals. This process, called
strategic planning or strategic management, includes the formulation of a strategic plan that integrates quality as a
core component.
8. Continual improvement: (Research and Development)
9. Continual improvement drives an organization to be both analytical and creative in finding ways to become more
competitive and more effective at meeting stakeholder expectations.
10. Fact-based decision making: TQM requires that an organization continually collect and analyze data in order to
improve decision making accuracy, achieve consensus, and allow prediction based on past history.
11. Communications: communications plays a large part in maintaining morale and in motivating employees at all
levels. Communications involve strategies, method, and timeliness

HOW TODAY’S MANAGER USE THE QUANTITATIVE APPROACH?

5. CONTEMPORARY APPROACH
Zainab Shafiq Management Notes Chapter 1 Management History Module

Change in demand

Consumer approach

Decision taken based on circumstances “situational”

Organization takes input from environment and transforms or processes these resources into outputs
that are distributed into environment.

SYSTEM APPROACHING TO CONTRIBUTE OUR MANAGEMENT UNDERSTANDING

Researchers imagined organizations as complex systems

comprised of components including individuals, groups, goals,
status etc. Managers ensure all these parts are working together
so organization goals can be achieved

SYSTEM APPROACH IMPLIES THAT DECISIONS AND ACTIONS I

ONE ORGANIZATIONAL AREA WITH AFFECT OTHERS.

Manager manages all parts of the system so restaurant meets its

daily needs.

THE CONTIGENCY APPROACH: sometimes called situational

approach

Says organizations are different, face different situations (contingencies) and require different managing
ways.

Good way to describe it are ‘If, then situation’

If this is my situation then this is the best way to manage this situation.

Way to manage depends on situation and another to say what the situation is. Management researchers
continue to work identify these situation variability’s.

A contingency approach to
management is based on the theory that management effectiveness is contingent, or dependent,
upon the interplay between the application of management behaviors and specific situations. In
other words, the way you manage should change depending on the circumstances. One size does
not fit all.