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War is not possible without an effective system of public administration. Military officers were the first public administrators.
The transfer of managerial control from those of wealth and power to those with professional expertise first happened in the Roman army. The power of technical expertise would not be seen again until Napoleon.
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Administrative Management:
Henri Fayol Luther Halsey Gulick Max Weber
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Frederick Taylor
Taylor is born in Pennsylvania on March 20, 1856 After studying in Europe, he plans to go to Harvard, but does not pass the entrance exams Instead Taylor works as a pattern maker at a pump manufacturing company in Philadelphia Later, he studies mechanical engineering at Stevens, finishing in just three years.
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Frederick Taylor
Taylor identifies two people as having influenced him: Lucian Sharpe impresses Taylor with his focus, concentration, and task commitment John Griffith teaches Taylor how to be an appreciative, respectful, and admirable working mechanic
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3.
4.
Scientific Job Analysis observation, data gathering, and careful measurement determine the one best way to perform each job Selection of Personnel scientifically select and then train, teach, and develop workers Management Cooperation managers should cooperate with workers to ensure that all work is done in accordance with the principles of the science that developed the plan Functional Supervising managers assume planning, organizing, and decision-making activities, and workers perform jobs
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Scientific Management
Limitation
Do not take into account the human and social aspects.
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Henri Fayol
Engineer and French industrialist In France works as a managing director in coal-mining organization Recognizes the management principles rather than personal traits While others shared this belief, Fayol was the first to identify management as a continuous process of evaluation.
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Fayols 14 Principles:
1. 2. Division of Work improves efficiency through a reduction of waste, increased output, and simplification of job training Authority and Responsibilityauthority: the right to give orders and the power to extract obedience responsibility: the obligation to carry out assigned duties Disciplinerespect for the rules that govern the organization
3.
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Fayols 14 Principles:
4. Unity of Commandan employee should receive orders from one superior only 5. Unity of Directiongrouping of similar activities that are directed to a single goal under one manager 6. Subordination of Individual Interests to the General Interest interests of individuals and groups should not take precedence over the interests of the organization as a whole. 7. Remuneration of Personnelpayment should be fair and satisfactory for employees and the organization 8. Centralizationmanagers retain final responsibility subordinates maintain enough responsibility to accomplish their tasks
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Fayols 14 Principles:
9. Scalar Chain (Line of Authority)the chain of command from the ultimate authority to the lowest 10. Orderpeople and supplies should be in the right place at the right time 11. Equitymanagers should treat employees fairly and equally 12. Stability of Tenure of Personnelmanagerial practices that encourage long-term commitment from employees create a stable workforce and therefore a successful organization 13. Initiativeemployees should be encouraged to develop and carry out improvement plans 14. Esprit de Corpsmanagers should foster and maintain teamwork, team spirit, and a sense of unity among employees
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3. 4.
Charismatic Authority: based on the sacred or outstanding characteristic of the individual. Traditional Authority: essentially a respect for customs. Rational Legal Authority: based on a code or set of rules.
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Herbert Simon.
Bounded rationality and satisficing. Programmed and unprogrammed decision-making. Management information systems.
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Behavioral Approach
Developed because (a) classical approach didnt achieve total efficiency and workplace harmony and (b) managers still encountered problems because workers didnt always behave as they were supposed to Two branches:
Human Relations Approach Behavioral Sciences Approach
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- Psychological need
Individual & Group Manager and subordinate relation Early attempt to discover the social and psychological factor that would create effective human relation.
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The Hawthorne Effect: The possibility that workers who receive special attention will perform better simply because they received that attention.
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Sociology
Anthropology
HR: Social man motivated by desire for form relationships with others.
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Enormous contributions to understanding of individual motivation, group behaviour interpersonel relationship at work and the importance of work to human beings.
Continue to contribute new insights in important areas as leadership, conflict, power, organizational change and communication.
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Systems Theory
Systems theory views an organization as a complex set of dynamically intertwined and interconnected elements, including inputs, processes, outputs, feedback loops, and the environment. Any change in one element causes changes in other elements.
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Systems Approach
Views an organization as interrelated parts with a unified purpose: surviving and ideally thriving in its environment Management should focus on efficiency and effectiveness in each part of the organization Elements of an organization are interconnected Organization is linked to its environment Open Systems vs. Closed Systems
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Systems Theory
Cybernetics Norbert Wiener (1948).
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Systems Theory
The learning organization.
Built on the doctrines of participation Maslows hierarchy of needs. New component technologies (the five disciplines).
Personal mastery. Mental models. Building shared vision. Team learning. Systems thinking.
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Contingency Approach
Helps in better understanding the interactions of an organizations components. Views an organization as interrelated parts with a unified purpose: surviving and ideally thriving in its environment Workplace situations are too complex to analyze and control; thus, instead of focusing on trying to find the one best way to arrange workplace variables, managers focus on adapting their behavior to match the demands of the situation
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice
Drucker achieved prominence through his writings and consulting. He asks: What is our business? Who Is the customer? What does the customer buy? What does the customer consider value? What will our business be? And what should it be?
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice Importance on Innovation Key areas for setting objectives and evaluating results
Fortune magazine publishes a survey of the most admired corporations. The areas that Fortune uses bear a strong resemblance to Druckers key areas.
Management by Objectives
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice Druckers focus on managerial practice asks the lingering question: Can our academic research have rigor and also be relevant to the practice of management?
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice - Key ideas
Decentralization and simplification. Drucker discounted the command and control model and asserted that companies work best when they are decentralized. According to Drucker, corporations tend to produce too many products, hire employees they don't need (when a better solution would be outsourcing), and expand into economic sectors that they should avoid.
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice - Key ideas The concept of "Knowledge Worker" in his 1959 book "The Landmarks of Tomorrow". Since then, knowledge-based work has become increasingly important in businesses worldwide. The prediction of the death of the "Blue Collar" worker. A blue collar worker is a typical high school dropout who was paid middle class wages with all benefits for assembling cars in Detroit. The changing face of the US Auto Industry is a testimony to this prediction.
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice - Key ideas The concept of what eventually came to be known as "outsourcing." He used the example of front room and a back room of each business: A company should be engaged in only the front room activities that are core to supporting its business. Back room activities should be handed over to other companies, for whom these are the front room activities.
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice - Key ideas The importance of the non-profit sector, which he calls the third sector (private sector and the Government sector being the first two.) Non-Government Organizations (NGOs) play crucial roles in countries around the world. A profound skepticism of macroeconomic theory. Drucker contended that economists of all schools fail to explain significant aspects of modern economies.
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice - Key ideas Respect of the worker. Drucker believed that employees are assets and not liabilities. He taught that knowledgeable workers are the essential ingredients of the modern economy. Central to this philosophy is the view that people are an organization's most valuable resource, and that a manager's job is both to prepare people to perform and give them freedom to do so.
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice - Key ideas A belief in what he called "the sickness of government." Drucker made nonpartisan claims that government is often unable or unwilling to provide new services that people need or want, though he believed that this condition is not inherent to the form of government. The chapter "The Sickness of Government" in his book The Age of Discontinuity formed the basis of New Public Management, a theory of public administration that dominated the discipline in the 1980s and 1990s.
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice - Key ideas The need for "planned abandonment." Businesses and governments have a natural human tendency to cling to "yesterday's successes" rather than seeing when they are no longer useful. A belief that taking action without thinking is the cause of every failure.
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice - Key ideas The need for community. Early in his career, Drucker predicted the "end of economic man" and advocated the creation of a "plant community" where an individual's social needs could be met. He later acknowledged that the plant community never materialized, and by the 1980s, suggested that volunteering in the non profit sector was the key to fostering a healthy society where people found a sense of belonging and civic pride.
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice - Key ideas The need to manage business by balancing a variety of needs and goals, rather than subordinating an institution to a single value. This concept of management by objectives forms the keynote of his 1954 landmark The Practice of Management.
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Guru of Management
Peter Drucker (1909 2005) Guru of Management Practice - Key ideas A company's primary responsibility is to serve its customers. Profit is not the primary goal, but rather an essential condition for the company's continued existence. An organization should have a proper way of executing all its business processes. A belief in the notion that great companies could stand among humankind's noblest inventions.
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Thank You
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