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THE EMERGENCE OF MANAGEMENT

THOUGHT
HISTORY OF MANAGEMENT
How management came into being?
Philosophers who contributed in
management?
Who is the father of scientific
management?
THE EVOLUTION OF MANAGEMENT
1. CHINESE: 1100 B.C. Management
Functions
2. GREEKS: 350 B.C. to 400 B.C.
Recognized management as a
separate art
3. VENETIANS: standardized production
using the assembly line
4. MANAGERS OPERATED STRICTLY ON A
TRIAL AND ERROR BASIS
Early management Concepts
1700 1800 STEAM ENGINE
Impressive performance: Production &
quantity, division of labor
Emergence of the Economies of
Scale
-

Average cost of producing a particular


product decrease as production
increase.

Opportunities for mass production.

ECONOMIES OF SCALE

TYPES OF MANAGEMENT CONCEPTS


1. Systematic Management
2. Scientific Management
3. Administrative Management
4. Fayols Principles of Management
5. Human Relations
6. Webers Five Principles of Bureaucracy
7. Quantitative Management
8. Organizational Behavior
9. Open system view
10.Contingency
1. Systematic Management
19th century, U.S. Businesses were
centered on manufacturing;
Tasks were subdivided and performed
by specialize labor (- poor
coordination).
Attempted to build specific processes
and procedures.
Managers were concerned on the
internal operations of their business.
The father of scientific management..

THE FATHER OF SCIENTIFIC


MANAGEMENT?

2. Taylors Techniques
1. Time and motion studies: Banks
Operations

obedient, applied respectful


employees are necessary for the
organization to function;

e. Remuneration of personnel
-

2. Hiring and training

An equitable uniform payment system


that motivates contributes to
organizational success;

3. Standardization of tools

f. Stability of Tenure of Personnel

4. Instruction cards -

- Long term employment is important for the


development of skills that improve the
organizations performance.

5. Breaks to eliminate fatigue


6. Piece rate system
3. ADMINISTRATIVE MANAGEMENT

g. Subordination of individual interest


to the common interest

Emerged in 1916
Henri Fayol published a book
summarizing his management
experiences;
He identified the functions of
management and management
experiences.
3. Fayols Principles of Management

h. Esprit De Corps
- unity, shared enthusiasm foster devotion to
the common cause.
i.

Division of work;
-

a. Equity
-

The provision of justice and the fair


and impartial treatment of all
employees;

b. Order
-

The arrangement of employees where


they will be of the most value to the
organization and to provide career
opportunities;

c. Initiative
- The fostering of creativity and
innovation by encouraging employees to
act to their own.
d. Discipline

The interest of the organization takes


precedence over that of the individual
employee;

Divide work into specialized tasks and


assign responsibilities to specific
individuals.

j. Authority
-

Delegate authority along with


responsibility

k. Unity of command
- Each employee is assigned to only one
supervisor.
Human Relations
1. Developed during the 1930s aimed at
understanding how psychological and
social processes interact with the work
situation to influence performance;
2. Emphasize informal work relationships
and worker satisfaction.

3. Hierarchy of Needs.
4. Maslow (1943); Five levels of needs;

4. Lines of authority should be clearly


identified such that workers know who
reports to whom.

5. Basic Needs, Advanced Need: Self


Actualization or personal fulfillment;

5. Rules, standard operating procedures


and norms guide the firms operations.

6. People try to satisfy their lower level


needs and then progress upward to
the higher level needs.
Maslow Hierarchy of NEEDS

4. Quantitative Management
1. Emphasizes the application of
quantitative analysis to management
decisions and problems;
2. Helps manager make a decision by
developing formal mathematical
models.
5. Organizational Behavior
1. 1950s: Studies and identifies
management activities that promote
employee effectiveness through an
understanding of the complex nature
of individual, group and organizational
processes;
2. Douglas McGregor 1960s.
3. Explain the behavior of people in a job
(X,Y)

5. Bureaucracy
1. Max Weber: are important, because they
allow large organizations to perform the
many routine activities necessary for
survival.
2. Foster specialized skills.
3. Five principles of bureaucracy.
Webers Five Principle of Bureaucracy
1. Authority is the power to hold people
for their actions;

Theory X and Y
X= Workers are lazy and
irresponsible which requires
supervision and motivation
Y=Want to work, can direct and
control; There must be participation
and allow opportunities
6. The open system view
Open system
-

Takes resources from its external


environment and converts them to
goods and services;

I-P-O system ;

Organization is one system in a series


of subsystem

2. Positions in the firm should be held


based on performance;
3. Positions duties are clearly identified
so that people know what is expected
of them;

7. Contingency
The idea that the organizational
structure and control systems
manager choose depend on are
contingent on-characteristics of the
external environment in which the
organization operates;

Recommendations are set (SWOT)