ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Business Administration)

Course: Management Theory & Practice (5003) Name: Mujtaba Zulfiqar Ahmed
Level MSc. Administrative Sciences Roll No: CC507647

ASSIGNMENT No. 1

Q.1 Discuss Scientific Management School in detail.

Answer
Scientific Management
The scientific school of management is one of the schools that make up classical management theory.
Still very much concerned with increasing productivity and efficiency in organizations by finding the best
way to do something, the scientific school of management is focused on the 'science' of creating
specialized work processes and workforce skills to complete production tasks efficiently.
Classical scientific theorists such as Frederick Taylor, Henry Gantt, and Frank and Lillian Gilbreth spent
their time researching how a specific job was done, what steps were taken by an employee to complete
the work, the amount of time it took a worker to complete a task using different methods, and then used
this information to determine which way was most effective.
The result of this research led to the development of four principles of scientific management:
1. Management should provide workers with a precise, scientific approach for how to complete
individualized tasks.
2. Management should carefully choose and train each employee on one specific task.
3. Management should communicate with employees to ensure the method used to complete the
task is, in fact, the most productive and efficient.
4. Management should create the appropriate divide of labor.
Application of Scientific Management
Application of these scientific management principles is quite simplistic once up and running, but it
requires a great deal of analysis up front. A manager must first consider the nature of the work that
needs to be completed and then decide the best possible way to go about it. A division of labor allows
the manager to take complex tasks and break them down into smaller, more precise tasks that the
individual workers can complete. Each employee is trained explicitly on how to best perform their task. A
manager will check with their worker to ensure that the suggested method for completing the work is
efficient and make adjustments when necessary. If all goes as planned, a manager will watch as a
product efficiently moves from worker to worker down the production line. As the individual parts come
together, the sum is essentially created. Think of an assembly line where each individual employee
completes one repetitive step in the product development process. The product is finished and ready to
be sold after each employee completes his or her respective tasks in the product development process.
To see classical scientific management, division of labor, and the assembly line in action, we can turn to
Henry Ford of Ford Motor Company.
The scientific management movement produced revolutionary ideas for the time—ideas such as
employee training and implementing standardized best practices to improve productivity. Taylor’s theory
was called scientific because to develop it, he employed techniques borrowed from botanists and
chemists, such as analysis, observation, synthesis, rationality, and logic. You may decide as you read
more about Taylor that by
today’s criteria he was not the worker’s “friend.” However, Taylor must be given credit for creating the
concept of an organization being run “as a business” or in a “businesslike manner,” meaning efficiently
and productively.
Before the Industrial Revolution, most businesses were small operations, averaging three or
four people. Owners frequently labored next to employees, knew what they were capable of,
and closely directed their work. The dynamics of the workplace changed dramatically in the
United States with the Industrial Revolution. Factory owners and managers did not possess
close relationships with their employees. The workers “on the floor” controlled the work process
and generally worked only hard enough to make sure they would not be fired. There was little or
no incentive to work harder than the next man (or woman).
Taylor was a mechanical engineer who was primarily interested in the type of work done in
factories and mechanical shops. He observed that the owners and managers of the factories
knew little about what actually took place in the workshops. Taylor believed that the system
could be improved, and he looked around for an incentive. He settled on money. He believed a
worker should get “a fair day’s pay for a fair day’s work”—no more, no less. If the worker
couldn’t work to the target, then the person shouldn’t be working at all. Taylor also believed that
management and labor should cooperate and work together to meet goals. He was the first to
suggest that the primary functions of managers should be planning and training.
In 1909, Taylor published The Principles of Scientific Management. In this book, he suggested
that productivity would increase if jobs were optimized and simplified. He also proposed
matching a worker to a particular job that suited the person’s skill level and then training the
worker to do that job in a specific way. Taylor first developed the idea of breaking down each job
into component parts and timing each part to determine the most efficient method of working.
Soon afterward, two management theorists, Frank and Lillian Gilbreth, came up with the idea of
filming workers to analyze their motions. Their ideas have since been combined into one
process (called time and motion studies) for analyzing the most productive way to complete a
task.
Scientific management has at its heart four core principles that also apply to organizations
today. They include the following:
 Look at each job or task scientifically to determine the “one best way” to perform the job. This is a
change from the previous “rule of thumb” method where workers devised their own ways to do
the job.
 Hire the right workers for each job, and train them to work at maximum efficiency.
 Monitor worker performance, and provide instruction and training when needed.
 Divide the work between management and labor so that management can plan and train, and
workers can execute the task efficiently.
Taylor designed his approach for use in places where the work could be quantified, systemized, and
standardized, such as in factories. In scientific management, there is one right way to do a task; workers
were not encouraged (in fact, they were forbidden) to make decisions or evaluate actions that might
produce a better result. Taylor was concerned about the output more than worker satisfaction or
motivation. Taylor’s work introduced for the first time the idea of systematic training and selection, and it
encouraged business owners to work with employees to increase productivity and efficiency. And he
introduced a “first-class worker” concept to set the standard for what a worker should be able to produce
in a set period of time. Scientific management grew in popularity among big businesses because
productivity rose, proving that it worked.
Today, an updated version of his original theory is used by such companies as FedEx and Amazon.
Digital Taylorism is based on maximizing efficiency by standardizing the tools and techniques for
completing each task involved with a given job. Every task is broken down to the smallest motion and
translated into an exact procedure that must be followed to complete that task. Because everyone is
operating in the same mechanistic way, it increases predictability and consistency while reducing errors.
It is relatively easy for managers to replace workers and retain the same productivity. The criticism of
this type of management approach is similar to that of Taylor’s original theory: It reduces worker
creativity; it requires management to monitor all aspects of employee behavior; and it is unforgiving to
workers who don’t meet the standard.

Q.2 Discuss the problem finding process in detail. Also describe the rational
model of decision making.
Answer
Problems are at the center of what many people do at work every day. Whether you're solving a
problem for a client (internal or external), supporting those who are solving problems, or discovering
new problems to solve, the problems you face can be large or small, simple or complex, and easy or
difficult.
A fundamental part of every manager's role is finding ways to solve them. So, being a confident problem
solver is really important to your success. Much of that confidence comes from having a good process to
use when approaching a problem. With one, you can solve problems quickly and effectively. Without
one, your solutions may be ineffective, or you'll get stuck and do nothing, with sometimes painful
consequences.
Diagnose the situation so that your focus is on the problem, not just its symptoms. Helpful problem-
solving techniques include using flowcharts to identify the expected steps of a process and cause-and-
effect diagrams to define and analyze root causes.
The sections below help explain key problem-solving steps. These steps support the involvement of
interested parties, the use of factual information, comparison of expectations to reality, and a focus on
root causes of a problem. You should begin by:
 Reviewing and documenting how processes currently work (i.e., who does what, with what
information, using what tools, communicating with what organizations and individuals, in what
time frame, using what format).
 Evaluating the possible impact of new tools and revised policies in the development of your “what
should be” model.
1. Generate alternative solutions
Postpone the selection of one solution until several problem-solving alternatives have been proposed.
Considering multiple alternatives can significantly enhance the value of your ideal solution. Once you
have decided on the "what should be" model, this target standard becomes the basis for developing a
road
map for investigating alternatives. Brainstorming and team problem-solving techniques are both useful
tools in this stage of problem solving.
Many alternative solutions to the problem should be generated before final evaluation. A common
mistake in problem solving is that alternatives are evaluated as they are proposed, so the first
acceptable solution is chosen, even if it’s not the best fit. If we focus on trying to get the results we want,
we miss the potential for learning something new that will allow for real improvement in the problem-
solving process.

2. Evaluate and select an alternative

Skilled problem solvers use a series of considerations when selecting the best alternative. They
consider the extent to which:
 A particular alternative will solve the problem without causing other unanticipated problems.
 All the individuals involved will accept the alternative.
 Implementation of the alternative is likely.
 The alternative fits within the organizational constraints.
3. Implement and follow up on the solution
Leaders may be called upon to direct others to implement the solution, "sell" the solution, or facilitate
the implementation with the help of others. Involving others in the implementation is an effective way to
gain buy-in and support and minimize resistance to subsequent changes.
Regardless of how the solution is rolled out, feedback channels should be built into the
implementation. This allows for continuous monitoring and testing of actual events against expectations.
Problem solving, and the techniques used to gain clarity, are most effective if the solution remains in
place and is updated to respond to future changes.
Definition
Being the opposite of intuitive decision making, rational model of decision making is a model where
individuals use facts and information, analysis, and a step-by-step procedure to come to a decision. The
rational model of decision making is a more advanced type of decision-making model.
Introduction
Decision making is what hominids do every day. From the moment humans open their eyes in the
morning, they start making decisions about whether to snooze the alarm or just go ahead and get up. All
through the day, decisions are made continuously until the decision is made to close their eyes again.
Decision making therefore is what makes the human element alive and functional while deciding the
world around them and ultimately individual personal fates. Decision making almost always involves
choices. In a world full of choices, the individual personality is constantly...
Q.3 What is Management by Objectives? Also advantages and limitations of
Planning.
Answer
What is Management by Objectives (MBO)?
Management by objectives (MBO) is a strategic management model that aims to improve the performance
of an organization by clearly defining objectives that are agreed to by both management and
employees. According to the theory, having a say in goal setting and action plans encourages
participation and commitment among employees, as well as aligning objectives across the organization.

Management by Objectives
 Management by objectives (MBO) is a strategic management model that aims to improve
organizational performance by clearly defining objectives that are agreed to by both management
and employees.
 According to the theory, having a say in goal setting and action plans encourages participation
and commitment among employees, as well as aligning objectives across the organization.
 The strategy was formulated by Peter Drucker in the 1950s, detailing five steps that organizations
should follow.
 Critics of MBO argue that it leads to employees trying to achieve the set goals by any means
necessary, often at the cost of the company.
Understanding Management by Objectives (MBO)
Management by objectives (MBO) is the establishment of a management information system to compare
actual performance and achievements to the defined objectives. Practitioners claim that the major
benefits of MBO are that it improves employee motivation and commitment and allows for better
communication between management and employees.
However, a cited weakness of MBO is that it unduly emphasizes the setting of goals to attain objectives,
rather than working on a systematic plan to do so. Critics of MBO, such as W. Edwards Demming, argue
that setting particular goals like production targets leads workers to meet those targets by any means
necessary, including short-cuts that result in poor quality.
In his book that coined the term, Peter Drucker set forth several principles for management by
objectives. Objectives are laid out with the help of employees and are meant to be challenging but
achievable. Employees receive daily feedback, and the focus is on rewards rather than punishment.
Personal growth and development are emphasized, rather than negativity for failing to reach objectives.
MBO was not a cure-all but a tool to be utilized. It gives organizations a process, with many practitioners
claiming that the success of MBO is dependent on the support from top management, clearly outlined
objectives, and trained managers who can implement it.
Management by Objectives (MBO) in Practice
Management by objectives outlines five steps that organizations should use to put the management
technique into practice.
 1. The first step is to either determine or revise organizational objectives for the entire company.
This broad overview should be derived from the firm's mission and vision.
2. The second step is to translate the organizational objectives to employees. Drucker used the
acronym SMART (specific, measurable, acceptable, realistic, time-bound) to express the
concept.
3. Step three is stimulating the participation of employees in setting individual objectives. After the
organization's objectives are shared with employees, from the top to the bottom, employees
should be encouraged to help set their own objectives to achieve these larger organizational
objectives. This gives employee’s greater motivation since they have greater empowerment.
4. Step four involves monitoring the progress of employees. In step two, a key component of the
objectives was that they are measurable in order for employees and managers to determine how
well they are met.
5. The fifth step is to evaluate and reward employee progress. This step includes honest feedback
on what was achieved and not achieved for each employee.
Advantages of Planning
Planning is one of the crucial functions of management. It is basic to all other functions of management.
There will not be proper organization and direction without proper planning. It states the goals and
means of achieving them.
Above all other things, planning is important for the following reasons:

1. Attention on Objectives
Planning helps in clearly laying down objectives of the organization. The whole attention of
management is given towards the achievement of those objectives. There can be priorities in
objectives, important objectives to be taken up first and others to be followed after them.
2. Minimizing Uncertainties
Planning is always done for the future. Nobody can predict accurately what is going to happen.
Business environments are always changing. Planning is an effort to foresee the future and plan the
things in a best possible way. Planning certainly minimizes future uncertainties by basing its
decisions on past experiences and present situations.
3. Better Utilization of Resources
Another advantage of planning is the better utilization of resources of the business. All the resources
are first identified and then operations are planned. All resources are put to best possible uses.
4. Economy in Operations
The objectives are determined first and then best possible course of action is selected for achieving
these objectives. The operations selected being better among possible alternatives, there is an
economy in operations. The method of trial and error is avoided and resources are not wasted in
making choices. The economy is possible in all departments whether production, sales, purchases,
finances, etc.
5. Better Co – Ordination
The objectives of the organization being common, all efforts are made to achieve these objectives by
 a concerted effort of all. The duplication in efforts is avoided. Planning will lead to better co-
ordination in the organization which will ultimately lead to better results.
6. Encourages Innovations and Creativity
A better planning system should encourage managers to devise new ways of doing the things. It
helps innovative and creative thinking among managers because they will think of many new
things while planning. It is a process which will provide awareness for individual participation and
will encourage an atmosphere of frankness which will help in achieving better results.
7. Management by Exception Possible
Management by exception means that management should not be involved in each and every
activity. If the things are going well then there should be nothing to worry and management should
intervene only when things are not going as per planning. Planning fixes objectives of the
organization and all efforts should be made to achieve these objectives. Management should
interfere only when things are not going well. By the introduction of management by exception,
managers are given more time for planning the activities rather than wasting their time in directing
day-to-day work.
8. Facilitates Control
Planning and control are inseparable. Planning helps in setting objectives and laying down
performance standards. This will enable the management to cheek performance of subordinates.
The deviations in performance can be rectified at the earliest by taking remedial measures.

9. Facilitates Delegation
Under planning process, delegation of powers is facilitated. The goals of different persons are
fixed. They will be requiring requisite authority for getting the things clone.

Q.4 What do you know about concept of delegation? Discuss steps in and
obstacles to the Delegation Process?
Answer
Concept of Delegation of Authority
The process of assignment of specific work to individuals within the organization and giving them the
right to perform those works is delegation. It is about entrusting someone else to do parts of your job.
Delegation of Authority means division of authority and powers downwards to the subordinate. It is one
of the most significant concepts in management practice, which affects managerial functions.
Management is the art of getting things done through others and delegation means to get the results
through the subordinates. The expansion of business volume and diversification of line of business
makes it impracticable to handle all the business by a single manager. Therefore, the concept of
delegation of some managerial authority to subordinates comes into practice in present day business
organizations. Here, the manager delegates some of his authority to his subordinates. This helps in
developing a feeling of dedication to the work among the subordinates. The top level management plays
only the role of a supervisor and visits them to provide guidance, suggestions and instructions. It
minimizes the work load of the top manager and also develops the overall working efficiency of the
organization.
For achieving delegation, a manager has to work in a system and has to perform following
steps:
 Assignment of tasks and duties
 Granting of authority
 Creating responsibility and accountability
Delegation of authority is the base of superior-subordinate relationship; it involves following
steps: -

Assignment of Duties – The delegator first tries to define the task and duties to the
subordinate. He also has to define the result expected from the subordinates. Clarity of duty as
well as result expected has to be the first step in delegation.

Granting of authority – Subdivision of authority takes place when a superior divides and
shares his authority with the subordinate. It is for this reason; every subordinate should be given
enough independence to carry the task given to him by his superiors. The managers at all levels
delegate authority and power which is attached to their job positions. The subdivision of powers
is very important to get effective results.

Creating Responsibility and Accountability – The delegation process does not end once
powers are granted to the subordinates. They at the same time have to be obligatory towards
the duties assigned to them. Responsibility is said to be the factor or obligation of an individual
to carry out his duties in best of his ability as per the directions of superior.

Therefore, delegation of authority is assigning work to others and giving them the required
authority to perform the assigned task effectively. The concept of delegation has been
developed due to the increase in the size of business and its complexity. A manager needs to
delegate some of his authority to subordinates along with a specified responsibility. It is
necessary to complete the work efficiently and effectively.
Barriers to Delegation of Authority
Though delegation enhances efficiency of the organisation by dividing work amongst organisational
members (according to their capabilities), it is not free from obstacles.
Various barriers to delegation can be grouped in three main
headings. These are:
I. Barriers related to superiors or delegator,
II. Barriers related to subordinates or delegate, and
III. Barriers related to organisation.
I. Barriers related to Superiors
Despite knowing how important it is to delegate, superiors sometimes do not delegate work to
subordinates.

This is because of the following reasons:

1. Wanting to do things personally
Some managers do not delegate because they feel they can do the work better than others. Since
ultimate responsibility is that of the delegator, they prefer doing the work themselves rather than
 getting it done through others. This also helps in maintaining control over the activities assigned to
subordinates. The delegator enjoys doing the work and makes his importance felt in the
organisation by showing his busyness in the office.
2. Insecurity
If managers feel that subordinates perform better than them, they avoid delegation. The exposure
of their inabilities to take good decisions creates a feeling of insecurity and, therefore, they fear to
delegate. This happens in organisations where work procedures and methods are not sound. A
weak operating system usually stops the managers from revealing their shortcomings to the
subordinates.
3. Retention of power
Some managers like to take responsibility, make their importance felt by everyone in the
organisation and want the subordinates to come to them to get their problems solved. Their desire
to retain power and dominate is a hindrance to the effective delegation process. Such managers are
usually autocratic in nature. They abstain from delegation and prefer to direct people personally.
4. Lack of confidence in subordinates
The reward for risk is return. Unless managers assume the risk of subordinates not performing well,
they cannot contribute to the development of skilled managers in future. A manager who does not
take risk in subordinates and lacks confidence in them will not be able to delegate effectively.
Delegation is based on trust between superior and subordinates. Negative attitude towards
subordinates obstructs delegation as superior lacks confidence in the ability of subordinates.
5. Unwillingness to set standards of control
Having delegated the duties, managers remain accountable for overall performance of the work.
They supervise the activities of subordinates to ensure that actual performance is in conformity with
planned performance. A manager who fails to establish standards of control will not be able to
effectively delegate to subordinates.
Q.5 a) Describe the behavioral approach to leadership
Answer
Behavioral Theories of Leadership
Behavioral Theory of leadership is a big leap from Trait Theory, as it was developed scientifically by
conducting behaviour focused studies. The theory emphasizes that leadership capability can be learned,
rather than being inherent. This theory is based on the principle that a leader's behaviors can be
conditioned in a manner that one can have a specific response to specific stimuli.
Behavioral Theories of Leadership, also known as “The style approach to leadership” focuses on the
behavior of the leader and what leaders do and how they act. In the 1940s, two parallel studies on
leadership were in progress, one based on traits displayed by leaders, another on the behaviours
exhibited by leaders.
 Traits theory assumes that leaders are born, rather than made
 Trait theory concentrates on, what the leaders are
 Great Man Theory and Traits Theory are focused on intrinsic personal characteristics
 Behavioural theories are based upon the belief that great leaders are made, not born
  Behavioural theories concentrate on, what leaders do
 Behavioral approach is based on the leader's beliefs, values, and interpersonal relations
 Considers the Leader's attitude, behavior, opinion, and concern about his followers/organization
 Studies leadership behavior from the point of view of motivation, supervision, and authority
 Behavioural theories assume that specific behavioral patterns of leaders can be acquired
 People can learn to become leaders through teaching and observation.
What are Behaviors?
Human behavior refers to the range of behaviors exhibited by humans and which are influenced by
culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion and/or
genetics. In humans, behavior is believed to be controlled primarily by the endocrine system and the
nervous system. Behaviors can be either innate or learned.
Human behavior is experienced throughout an individual’s entire lifetime. It includes the way they act
based on different factors such as genetics, social norms, core faith, and attitude. Behavior is impacted
by certain traits each individual has. The traits vary from person to person and can produce different
actions or behavior from each person.

Q.5 b) Discuss types and characteristics of teams.

Answer
Four Different Types of Teams
1. Functional Teams
Functional teams are permanent and include members of the same department with different
responsibilities. A manager is responsible for everything and everyone reports to them. This is the
typical top-down management approach that you’ll see in most organisations. Across all organisational
teams, it’s important to prioritise workplace culture; the foundations of which are communication and
trust.
To take your functional team to the next level, consider running a program in-house to improve
communication by giving your team the tools to give feedback without causing offence.
Additionally, it may be worthwhile getting clear on each individual teams’ goals, identity and preferred
support methods to boost productivity and individual employee engagement.
2. Cross – Functional Teams
Cross-functional teams are made up of individuals from various departments. These teams tackle
specific tasks that require different inputs and expertise. This can happen when various teams need to
work on a project together to get the best outcome. This can be a difficult dynamic to navigate if teams
have been operating in a ‘silo’ approach up until the point of collaboration. It’s crucial that the different
personalities and perspectives are embraced, and that everyone in the cross-functional team are
working to their strengths.
3. Self – Managed Teams
Generally, individuals in self-managed teams are employees of the same organisation who work
together. Even though they may have a wide array of objectives, their aim is to reach a common goal.
They operate without managers and are relatively autonomous, sharing responsibility and leadership.
High-performing teams can often fall into this category.
People working in startups or small businesses may also find themselves in this type of team dynamic. It
can be difficult for people who have worked in other types of teams for most of their career to adjust to
this way of working, so there will likely be an adjustment period of sorts. It’s crucial that self-managed
teams know how to deliver feedback and have tough conversations with tact. Without high levels of
communication, trust, autonomy and mutual respect, self-managed teams will find it difficult to thrive.
4. Virtual Teams
Virtual teams are made up of individuals who work in different physical locations and who use
technology and collaboration tools to achieve a common goal.
With more employees looking for work from home opportunities, virtual teams will become much more
common in the future of work. You may even have a few remote team members in your organisation
right now who need to collaborate within a functional or cross-functional team.
It’s important for virtual team members to be involved from a cultural perspective within your
organisation. Having face to face video calls and giving your team members the opportunity to connect
on a personal relationship level will help to improve rapport and moral. We’ve already shared a bunch of
info on creating a strong remote team culture, so give that a look when you have a moment.

END.