Organization Resource Management

• Zerihun Ayenew Birbirsa (Ph.D)

• Email: birbirsa2018@gmail.com
Organization Resource Management

▪ . Principles and practice of management

▪ . Materials and plant management
▪ . Recruitment and selection
▪ . Industrial Relation
▪ . Training and Motivation
▪ . Performance Appraisal
▪ . Wage and salary Admnistration
▪ . Industrial Relation and Grievance Handling
▪ . Communication and organizational structure
▪
Principles and practices of management
• Meanings of management

• It is the process of setting and achieving

organizational objectives (goal) by using the four
basic managerial functions by acquiring and
utilizing human, financial and other resources.
Principles and practices of management

• It is the process of attaining organizational goals

in an effective and efficient manner through the
four basic managerial functions such as
planning, organizing, leading and controlling.
Principles and practices of management
• What managers do?
• They get things done through other people.
• Management Activities:
. Make decisions
. Allocate resources
.Direct activities of others to attain goals
• Work in an organization
Principles and practices of management
• Managers execute managerial functions such
that:

• . Plan
• . Organize
• . Lead and
• . Control the activities of an organization
Principles and practices of management
• Managers’ play ten managerial roles

• Separated into three groups:

. Interpersonal
. Informational
. Decisional
Principles and practices of management
Principles and practices of management
Principles and practices of management
Principles and practices of management
• Essential Managerial Skills
• Technical Skills
➢ The ability to apply specialized knowledge or expertise
• Human Skills
➢ The ability to work with, understand, and motivate other
people, both individually and in groups
• Conceptual Skills
➢ The mental ability to analyze and diagnose complex
situations
Principles and practices of management
➢ Diagnostic Skills
• Most successful managers also bring diagnostic skills
to the organization.

• Diagnostic skills allow the manager to better

understand cause-and-effect relationships and
to recognize the optimal solution to problems.
Management Theories

Pioneering Ideas
In
Management
 MANAGEMENT THEORIES

Pre Classical Classical Behavioral Quantitative Contemporary

Contributors Viewpoint Viewpoint Viewpoint Viewpoint

Early Operations System Theory

Scientific Behaviorists Research
Management
Hawthorne
Studies Operations Contingencies
Administrative Management Theory
Management
Human
Bureaucratic Relations Management Emerging
Management Management Information Views
Science
Behavioral
Science
Approach

Major Viewpoints in the development of modern management

Management Theories

Pre-Classical

1. Pyramids and Walls

2. Adam Smith (1776)
3. Industrial Revolution
Prior to 1900s
Management Theories

Pre-Classical

1. Pyramids and Walls

500 to 5000 years ago!
Management Theories

Pre-Classical
• 2. Adam Smith (1776)
Economist
Division of Labor!
Breakdown of jobs into narrow and repetitive tasks
increased productivity e.g garment industry
Management Theories

Pre-Classical
3. Industrial Revolution
❖ substitution of machine power for human power
❖ large organizations required formal management

➢ Robert Owen (1771 - 1858)

➢ Charles Babbage (1792 - 1871)
➢ Henry R. Towne (1844 - 1924)
Management Theories

Pre-Classical
3. Industrial Revolution

➢ Robert Owen (1771 - 1858)

Entrepreneur (Scotland)
Advocated concern for the working and living
conditions for the employee
Organizations would responsible socially uplifts
Management Theories

Pre-Classical
3. Industrial Revolution

➢ Charles Babbage (1792 - 1871)

Interest in operations of factories
Built 1st mechanical calculator, ideas on work
(physical and mental) specialization, production
efficiency, costing, incentives and profit – sharing
plan.
Management Theories

Pre-Classical
Machine power VS Human power

Assessing the early contributions:

✓ Uncoordinated efforts
✓ Contributions tended to relate to specific problems
✓ Did not see”Management” as a separate field or Skill
(until Towne)
Management Theories

Pre-Classical
3. Industrial Revolution

➢ Henry R. Towne (1844 - 1924)

President of a manufacturing organizatio
Called for “Management Science” and for
development of “Principles of Management”.
Management Theories

• Classical

1. Scientific Management
2. Bureaucratic Management
3. Administrative Management
Management Theories
• Classical Viewpoint

1. Scientific Management
2. Bureaucratic Management
3. Administrative Management
This viewpoint emphasis on
finding ways to manage
Work and Organizations
more efficiently!
 Management Theories
Classical Viewpoint

This viewpoint emphasis on finding ways to manage

Work and Organizations more efficiently!
Organization should be …….

• Brand loyalty • Social Values

• Living systems
• Satisfy Client
Like Legal, Economic,
• Focus on low wastage Technical, Environmental
systems e.g proper drain
of water in any factory…
Management Theories
• Classical Viewpoint

1. Scientific Management
F. W. Taylor, Frank & Lillion Gilbreth, H. Gantt
2. Bureaucratic Management
Max Weber
3. Administrative Management
Henry Fayol (France)
Management Theories
• Classical Viewpoint

1. Scientific Management
Frederick. W. Taylor (1865 - 1915)
Laborer to Chief Engineer (6 Year)
Principles o f Scientific Management Published (1911)
The use of scientific methods to define “one best way” for a job
to be done!
Or
An approach focusing on scientific study of work methods to
improve worker’s efficiency
 Management Theories
• Classical Viewpoint
Frederick Taylor four Principles of Scientific Management
• Study of each part of a task scientifically, and develop a best method
to perform it.
• Carefully select workers and train them to perform a task using the
scientifically developed method.
• Cooperate fully with workers to ensure they use the proper method.
• Divide work and responsibility so management is responsible for
planning work method using scientific principles and workers are
responsible for executing work accordingly.
Management Theories
• Classical Viewpoint
• 1. Scientific Management
Frank &Lillion Gilbreth
✓ Use of motion pictures to study hand-and-body
movements
✓ Time and motion studies Human implications of Scientific
Management
✓ Focused on increasing worker productivity through the
reduction of wasted motion
✓ Developed the micro chronometer to time worker motions
and optimize performance
Management Theories
• Classical Viewpoint
• 1. Scientific Management

Henry Gantt

Pay incentives
Gantt chart
Management Theories

• Classical Viewpoint
2. Bureaucratic Management
Max Weber (German Sociologist 1864 – 1920)
An approach emphasizing the need for organizations
to operate in a rational manner rather than relying on
owners and managers whims!
Management Theories
◼ Henri Fayol (1841-1925)
➢ General and Industrial Management
➢ PRIMARY FOCUS: Management (Functions
of Administration)
➢ More Respect for Worker than Taylor
◼ Workers are motivated by more than
money
◼ Equity in worker treatment

➢ More PRESCRIPTIVE
Management Theories
◼ Five Elements of Management -- Managerial
Objectives
➢ Planning
➢ Organizing
➢ Command
➢ Coordination
➢ Control
◼ Keep machine functioning effectively and
efficiently
Management Theories
• Fayol’s Principles of management
• Division of Labor: allows for job specialization.
➢ limited set of tasks
➢ Fayol noted jobs can have too much specialization
leading to poor quality and worker dissatisfaction.
• Authority and Responsibility - right to give orders
➢ Fayol included both formal and informal authority
resulting from special expertise.
• Unity of Command
➢ Employees should have only one boss.
Management Theories
• Line of Authority
➢ A clear chain of command from top to bottom of the
firm.
• Centralization
➢ The degree to which authority rests at the top of the
organization.
➢ Reduce importance of subordinate’s role
• Unity of Direction
➢ A single plan of action to guide the organization.
➢ One manager per set of activities
Management Theories
• Equity
➢ The provision of justice and the fair and impartial
treatment of all employees.
• Order
➢ The arrangement of employees where they will be of
the most value to the organization and to provide
career opportunities.
• Initiative
➢ The fostering of creativity and innovation by
encouraging employees to act on their own.
Management Theories
• Discipline
• Remuneration of Personnel
• Stability of Tenure of Personnel
Management Theories
• Subordination of Individual Interest to the
Common Interest
➢The interest of the organization takes
precedence over that of the individual
employee.
• Esprit de corps
➢Comradeship, shared enthusiasm foster
devotion to the common cause (organization).
➢“union is strength” “loyal members”
Management Theories
• The Behvioral (Human Relations Movement)

• The Hawthorne studies created quite a stir among

managers, providing the foundation for an entirely
new school of management thought that came to be
known as the human relations movement.
Management Theories
• The basic premises underlying the human relations
movement are that people respond primarily to their
social environment

• motivation depends more on social needs than on

economic needs.
• This perspective represented a fundamental shift
away form the philosophy and values of scientific
• management and classical organization theory.
Management Theories
• Howthorn study Conducted by Elton Mayo and
associates
➢Phase I: Illumination Experiments
Phase II: Relay Assembly Test Group
—flexible work env‘t + rest periods + short
work day & week + task simplification
➢Phase III: Interviewing Programme
the importance of informal work groups is
recognised
Management Theories
➢ Phase IV: The Bank Wiring Observation Room
Experiment

implementation of piecework incentive plan caused

production workers to establish informal levels of
acceptable individual output.
Management Theories

• Actually, it appears that the workers enjoyed the

attention they received as part of the study and
were more productive

• The discovery that paying special attention to

employees motivates them to put greater effort
into their jobs.
Management Theories
• Modern Approach
•
• it consists:
• .the management science approach
• . the systems approach
• .the contingency approach
Management Theories
• . The management science encompasses:
• - operation research
• - operation management and
• - management Information system
Management Theories
• System approach
• system- is a group of interrelated and
interdependent parts working together to attain
one common objective.
. A system can be open or closed
. System has boundary
. System has subsystems
.Failure in one subsystem can be considered as
failure of the entire system
Management Theories
• Contingency Theaory

• . organization is an open system,

• it is attached by several external environment
factors.
• . factors in environment change rapidly it is not
right to insist on only one way of managing an
organization.
Management Theories
• Contingency Theaory

• . organization is an open system,

• it is attached by several external environment
factors.
• . factors in environment change rapidly it is not
right to insist on only one way of managing an
organization.