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CURRENT THINKING
2nd Lecture
By Hareem Siddiqui
This chapter will help to acquire understanding of:
OBJECTIVES OF THE
CHAPTER 2
HISTORICAL BACKGROUND OF MANAGEMENT
EVOLUTION OF MANAGEMENT
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HISTORICAL BACKGROUND OF MANAGEMENT
EVOLUTION OF MANAGEMENT
THEORY 4
HISTORICAL BACKGROUND OF MANAGEMENT
Adam Smith (1776)
DIVISION OF LABOR 5
HISTORICAL BACKGROUND OF MANAGEMENT
Started in the pre-twentieth century(18th century).
INDUSTRIAL REVOLUTION 6
HISTORICAL BACKGROUND OF MANAGEMENT
Skilled labor requirement
Favorism
Nepotism
More wastage
Lack of management
Remuneration
PROBLEMS 7
HISTORICAL BACKGROUND OF MANAGEMENT
SCIENTIFIC APPROACH TO
MANAGEMENT
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HISTORICAL BACKGROUND OF MANAGEMENT
One best way for a job to be done.
The systematic study of relationships between people and
tasks for the purpose of
redesigning the work process
to increase efficiency.
SCIENTIFIC MANAGEMENT 9
HISTORICAL BACKGROUND OF MANAGEMENT
Study the way workers perform their tasks, gather all the informal job
knowledge that workers possess, and experiment with ways of improving how
tasks are performed.
Codify the new methods of performing tasks into written rules and standard
operating procedures.
Carefully select workers who possess skills and abilities that match the needs
of the task, and train them to perform the task according to the established rules
and procedures.
Establish a fair or acceptable level of performance for a task, and then develop
a pay system that rewards performance above the acceptable level.
TAYLORS PRINCIPLES OF
MANAGEMENT 10
HISTORICAL BACKGROUND OF MANAGEMENT
Hiring the best qualified employees.
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HISTORICAL BACKGROUND OF MANAGEMENT
The study of how to create an organizational structure
and control system that leads to high efficiency and
effectiveness.
ADMINISTRATIVE
MANAGEMENT 13
HISTORICAL BACKGROUND OF MANAGEMENT
Max Weber
THEORY OF BUREAUCRACY 14
HISTORICAL BACKGROUND OF MANAGEMENT
Division of work Remuneration
Authority and Centralization
responsibility Scalar chain
Discipline Order
Unity of command Equity
Unity of direction Stability
Subordination of the Initiative
individual interest to the Espirit de corps (team spirit)
general interest
FAYOLS PRINCIPLES 15
HISTORICAL BACKGROUND OF MANAGEMENT
Fayols 14 principles serve as a frame of reference for
current management practices.
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HISTORICAL BACKGROUND OF MANAGEMENT
Emphasize on increasing production through an
understanding of people.
BEHAVIORAL APPROACH TO
MANAGEMENT 18
HISTORICAL BACKGROUND OF MANAGEMENT
Series of experiments conducted at Hawthorne plant of
Western Electric between 1927 and 1932.
Illumination exp: relationship b/w light and productivity
Economic incentive exp: relationship b/w economic
incentive and productivity.
Rest exp: relationship b/w no. of breaks and productivity.
RESULTS OF HAWTHORNE
EXP 20
HISTORICAL BACKGROUND OF MANAGEMENT
People oriented approach to management.
Major Contributors:
Abraham Maslow
Douglas McGregor
HUMAN RELATIONS
MOVEMENT 21
HISTORICAL BACKGROUND OF MANAGEMENT
THEORY X AND THEORY Y 22
HISTORICAL BACKGROUND OF MANAGEMENT
It influences
Decision making
Communication
Org structure
Control systems
Leadership
Group behavior
Motivation
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HISTORICAL BACKGROUND OF MANAGEMENT
Suggests that managers can best improve their organizations
by using the scientific method and mathematical techniques to
solve org problems.
Quantitative Management
Total Quality Management
Operations Management
Management Information System
MANAGEMENT SCIENCE
APPROACH 25
HISTORICAL BACKGROUND OF MANAGEMENT
ORGANIZATIONAL ENVIRONMENT
THEORY
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HISTORICAL BACKGROUND OF MANAGEMENT
The set of forces and conditions that operate beyond an
organizations boundaries but affect a managers ability
to acquire and utilize resources.
ORGANIZATIONAL
ENVIRONMENT 27
HISTORICAL BACKGROUND OF MANAGEMENT
Views organization as a System
CONTINGENCY APPROACH 30
HISTORICAL BACKGROUND OF MANAGEMENT
CONTINGENCY APPROACH 31
HISTORICAL BACKGROUND OF MANAGEMENT
Organization size
Routineness of task technology
Environmental uncertainty
Individual differences
POPULAR CONTINGENCY
VARIABLES 32
HISTORICAL BACKGROUND OF MANAGEMENT