Untitled document-4
Untitled document-4
Fields of Management
• Marketing Management
• Technology Management
• Engineering Management
• Financial Management
• Human Resources Mgt.
• Project Mgt.
• Quality Mgt.
• Supply Chain Mgt
• Operations Mgt.
• Procurement Mgt.
• Change Management
Facility Mgt.
• Health Administration Mgt.
• Service Mgt.
• etc
Industrial Revolution
- Substituted machine power for human labor
- Created large organizations in need of management
CLASSICAL APPROACH
- Classical approach - first studies of management, which emphasized rationality and
making organizations and workers as efficient as possible.
SCIENTIFIC MANAGEMENT
Scientific management - an approach that involves using the scientific method to find the "one
best way" for a job to be done.
HENRI FAYOL
Principles of management
- Fundamental rules of management that could be applied in all organizational situations
and taught in schools.
1. Division of work
- Specialization increases output by making employees more efficient.
2. Authority
- Managers must be able to give orders, and authority gives them this right.
3. Discipline
- Employees must obey and respect the rules that govern the organization.
4. Unity of command
- Every employee should receive orders from only one superior.
5. Unity of direction
- The organization should have a single plan of action to guide managers and workers.
7. Remuneration
- Workers must be paid a fair wage for their services.
8. Centralization
- This term refers to the degree to which subordinates are involved in decision making.
9. Scalar chain
- The line of authority from top management to the lowest ranks is the scalar chain.
10. Order
- People and materials should be in the right place at the right time.
11. Equity
- Managers should be kind and fair to their subordinates.
13. Initiative
- Employees allowed to originate and carry out plans will exert high levels of effort.
● Hawthorne Studies a series of studies during the 1920s and 1930s that provided new
insights into individual and group behavior.
● The Hawthorne effect is a type of human behavior reactivity in which individuals modify
an aspect of their behavior in response to their awareness of being observed
3. Process focused
- Quality management focuses on work processes as the quality of goods and services is
continually improved.
5. Accurate measurement
- Quality management uses statistical techniques to neastire every critical variable in the
organization's operations. These are compared against standards to identify problems,
trace them to their roots, and eliminate their causes.
6. Empowerment of employees
- Quality management involves the people on the ne in the improvement process. Teams
are widely used in quality management programs as empowerment vehicles for finding
and solving problems.
CONTEMPORARY APPROACHES
● Closed system - systems that are not influenced by and do not interact with their
environment.