Chapter 3 Handouts - Management History and Current Thinking 2

Amity Colleg - BBS I 5/18/2021
MANAGEMENT
HISTORY AND
CURRENT THINKING
Chapter – 3
BBS – I
Collection of Nitesh Khatiwada 1
Management History
• Management started along with the human beings starting to
live together or even before.
• Can be traced to the beginning of human civilization.
• Humancivilization was not possible without proper
management.
• Family
= main source of development of management principles
of management.
1
Management History
• Theconcept of division of work can be found in the ancient text
of Hindu literature.
• Thevery existence of worshiping different deities for different
purpose shows the significance of specialization and division of
work.
• Theconcept of hierarchy, authority and scalar chain can also be
traced back to the beginning of “Satya Youg”.
• It
is said that Lord Ganesha was the youngest army general of all
times.
Management History
• The“Ram-Rajya” which dates back to around 5th century is
taken as a perfect example of well managed country of all times.
• Many Hindu literature suggest the existence of management
since the beginning of the human civilization.
• Theuse and development of management can be found in every
part of every civilization around the world.
• Whether it is Hindu, Roman, Egyptian, Babylonian or any other
age, traces of good management can be found everywhere.
2
Management History
• The
Egyptian pyramids and the Great Wall of China are the
modern proof of planning, organizing, directing and controlling.
• Theprojects of such tremendous scope, employing tens of
thousands of people could not be possible without management.
• It
is estimated that it took more than 100,000 workers some 20
years to construct a single pyramid
Management History
• Someone had to
• plan what was to be done
• organize people and materials to do it
• make sure those workers got the work done
• impose some controls to ensure that everything was done as planned
3
Management History
• With
developing business and industry complexities,
management also changed its form.
• Management is now being used to handle and manage the
current systems and developments.
• Thedevelopment of principles that we will be learning in this
chapter can be traced back to 19th century.
• The
streams of management thoughts is known as schools of
management.
Schools of Management
Human
Relations Managem
Decision Contingen
Classical and ent System
Science cy
Theories Behavioral Science Theories
Science Theories Theories
Theories
Theories
4
Early Management Pioneers
1. Robert Owen (1771-1858)

• British Industrialist
• Focus on development of Human Resources
• “Investment in human resource is more profitable than
investment in physical resources”
• Organizational Productivity = motivated human resource
• Output of motivated employees are always better than others
2. Charles Babbage (1792-1871)

• Cambridge University Professor
• Participative decision making
• Motivation is derived from profit sharing and participative
decision making with lower and mid-level management
• Decision should be based on reality, investigation and fact
• No place for intuition and opinion
5
Henry Robinson Towne (1844-

3. 1924)
• An industrialist
• Increasing employ’s skills and quality of employee improve
organization productivity
• Productivity can be increased only through joint effort of
employee and organization
• Emphasis on gathering the knowledge and experience of every
employees and managers
Classical Theories of Management

• Evolved around 20th century.
• Developed during industrial revolution to solve problems related
to factory.
• Particularly
focused management’s role on the efficiency of
production process.
• Stresses on rationality in decision making and work efficiency.
• Greatly contributed for mass production and industrialization.
• They are based on traditional concepts and thoughts.
6
A. Scientific
Management Theory
Classical Theories of B. Administrative

Management Management Theory
C. Bureaucratic Theory
of Management
A. Scientific Management Theories

• Developed by F.W. Taylor, an industrial engineer.
• Published
through his book named “Principle of Scientific
Management” in 1911.
• Hisbook emphasized on the use of scientific methods to define
“one best way” for doing things/work in organization.
• Through this theory, Taylor sought to solve the problem of
• Low productivity
• Poor payment system and greater inefficiencies
• High wastage if resources and low use of potential capacity
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• When he was working as a mechanical engineer, he observed certain
things about the workers:
• They were inefficient. Worker’s output was only about one-third of what
was possible.
• They used vastly different techniques to do the same job.
• There was no work standards.
• Workers were placed in jobs with little or no concern for matching their
abilities and aptitudes with the tasks they were required to do.
• Taylor set out to remedy that by applying the scientific method to
shop-floor jobs.
• He worked for two decades to find out “one best way” of doing such
jobs. Collection of Nitesh Khatiwada 15
Scientific Management
Theory
Based on
Motion Study Time Study Fatigue Study Rate Setting
8

Motion Study
• Study of the movement of employees while performing a job.
• Helps in identifying and reducing unnecessary movement of
workers and machinery.
Time Study
• Determine the exact time required to complete a work.
• Helps in
• Determining time limit to complete a work.
• Sequencing and allocating responsibilities to workers.

Fatigue Study
• Study of employ’s tiredness and laziness at work.
• Helps in determining appropriate working hours and
schedule for rest or break.
Rate Study
• Study of employ’s efficiency while doing a work.
• Payment made on the basis of output rather than time
spend on work.
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1. Science rather than rule of

thumb
2. Harmony rather than

discord
Principles of Scientific 3. Cooperation rather than

Management individualism
4. Output Maximization
5. Selecting and Developing

Employees
Principles of Scientific Management

1. Science not Rule of Thumb
• Use scientific method to solve problems.
• Discard making decision based on opinion or intuition or “it’s the way
things happen here” method.
2. Harmony not Discord
• Managers are responsible for creating congenial working
environment.
• It is necessary for effectiveness and efficiency of employees.
• It also reduces fatigue, tiredness and misunderstanding and increase
mutual respect.
10

3. Cooperation not individualism
• Cooperation creates synergy, which is necessary for attaining goals.
• Coordination and cooperation among managers and employees is
necessary for
• Building trust,
• Building respect
• Increasing confidence at work.
• It also helps in substitution of individual goal to organizational
goals.
• Leads to greater efficiency and effectiveness of organization.

4. Output Maximization
• The focus of scientific management is the maximization of
output.
• Proper utilization of factors of production enables firm to have
higher output.
• This in turn helps to increase rewards to employees.
• There should not be any output quota system in organization.
• Maximum output is the win-win situation for the firm and the
employees as well.
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5. Selecting and Developing Employees
• Employees should be properly selected and placed to
fit the organization and its work.
• Train employees regularly using scientific method to
increase their efficiency and effectiveness.
• Appropriate working hours and working conditions
should be set using scientific approach.
• There should be guarantee of proper facility for
promotion, retirement, entertainment facility etc.
Use of SMT now?

• SM guidelines and techniques for improving production
efficiency are still used in organizations today.
• Time-and-motion study are used to eliminate wasted motions.
• Hire
the best-qualified workers for a job are the major moto of
many companies these days.
• Incentive
systems in many of the firm are based on output as
SMT suggest.
• Harmonyamong employees and emphasis on good working
environment are also the contribution of SMT.
12
Limitations of SMT
• The
sole focus of the SMT is on the output or units produced per
employee. Hence, treats employees as machine.
• Thetheory focuses on increased efficiency and productivity of
shop-floor employees. Hence, it is has limited application.
• STMbelieves that financial incentives are the major source of
employees satisfaction. However, that may not always be true.
Limitations of SMT
• It
talks about increasing cooperation and harmony among
employees but misses out on acknowledging psychological and
social aspect of a worker.
• SMT advocates on one best way of doing things. However, there
can be numerous ways of doing a job.
• SMT focuses on developing scientific methods which may not be
financially viable to small organizations.
13
B. Administrative Management
Theory
• Introduces by industrialist Henry Fayol through his book
“Industrial and General Administration” in 1916.
• Unlike Taylor,
Fayol held a position as a Managing Director of a
coal mining company.
• Hence,his theory is more concerned with what managers do and
what constituted good management practice.
• Hespecially focused on developing this theory after he observed
a work stoppage that he judged to be a management failure.
B. Administrative Management
Theory
• As
per him, management is an activity common to all business
endeavors, government, and even home.
• Thus,he developed 14 principles of management that could be
applied to all organizational situations and taught in schools.
• Hewas also first to identify the functions of management
namely planning, organizing, commanding, coordinating and
controlling.
14
Principles of Management (AMT)
1. Division of Work
• Breaking down complex job into smaller and homogenous unit.
• Specialization increases output by making employees more
efficient.
2. Authority and Responsibility

• There should be balance between authority and responsibility.
• Managers must be able to give orders, and authority gives them
this right to do that.
3. Discipline
• Implies obedience and respect of authority.
• Employees must obey and respect the rules that govern
the organization.
4. Unit of Command
• Every employee should receive orders from only one superior.
• Receiving command from many superior creates confusion
and delays in action.
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5. Unity of Direction
• The organization should have a single plan of action to guide
managers and workers.
• Multiple direction and techniques from superiors confuse
subordinated.
6. Subordination of Individual Interest to General Interest
• The interests of employee should not take precedence over the
interests of the organization.
• Precedence of individual goal leads to lose-lose situation to both
employee and organization.

7. Remuneration of Personnel
• Workers must be paid a fair wage for their services.
• It should be based on experience, qualification, productivity,
inflation etc.
8. Centralization
• Refers to the degree to which subordinates are involved in
decision making.
• Ultimate decision making authority should be in top level
management.
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9. Scalar Chain
• The line of authority from top management to the lowest ranks is
the scalar chain.
• This enables effective flow of authority, order and communication.
10. Order
• People and materials should be in the right place at the right time.
• Each element should be obtained easily without loss of time.
11. Equity
• Managers should be kind and fair to their subordinates.
• There should not be any discrimination on any basis.
12. Stability of Tenure of Personnel

• Management should provide orderly personnel planning and ensure
that replacements are available to fill vacancies.
• There should also be enough assurance of job security in
organization.
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13. Initiative
• Employees who are allowed to originate and carry out plans will
exert high levels of effort.
• Taking initiation encourages and boost up the morale of employees.
14. Esprit de Corpse

• Promoting team spirit will build harmony and unity within the
organization.
• There is strength in unity as unity creates synergistic effect.
Contributions of AMT
• Every organization follows the management function namely
planning, organizing, commanding, coordinating and controlling.
• The fourteen management principles are universally applicable.
• In order to be a successful organization, the management should be
capable in terms of skills, knowledge, qualification and experience.
• Whole business activities can be categorized as technical, financial,
commercial, security, accounting and managerial. This helps in better
application of 14 principles.
• This theory has been the basis for development of other modern
theories for complex environment.
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Limitations of AMT
• Limited application for dynamic and complex environment as it
ignores the impact of environmental changes.
• All principles can’t be universally applicable.
• This theory is strategic management oriented theory. This theory does
not give any attention to the issues of workers.
• Human behavior and relation are ignored by this theory.
• This theory is also mechanistic in nature.
• It completely ignores the informal structure of organization.
The Bureaucratic Theory of Management

• It was developed by Max Weber, a German Psychologist.
• He proposed an idle model for management as “Bureaucratic Theory
of Management”.
• The theory focuses on ensuring management efficiency and
effectiveness in planning, decision making, employee selection and
protection, resource control, reporting and communication.
• It is defined as system of government through department managed
by state officials and not by elected representatives.
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Principles of BTM
Contribution of BTM
• Useful to manage big and complex organization.
• There are clear rules and regulation reducing confusions in decision
making.
• Specialization of employees facilitate organizational productivity.
• Emphasizes on formal selection process to select right person for right
job.
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Limitations of BTM
• Rationality is the primary focus of this theory. However, rational legal
system cannot be applied to all organization.
• This theory does not prioritize human sentiments and relations.
• The procedures mentioned in the theory are lengthy and time
consuming. Not appropriate for productivity and efficiency.
• Rigid rules, regulation and procedures are the backbone of the theory.
It may not be practical in many life situations.
• This theory lacks innovation and flexibility. Not suitable for dynamic
and changing environment.
Human Relations and Behavioral

Science Theories
• The classical theories fail to address the human behavior approach to
management.
• However, managers get things done by working with people.
• This very reason inspired some writers to look at organization
focusing in the organization’s people.
• The field of study that researches the actions of people at work in
called organization behavior (OB).
• Much of what managers do today when managing people—motivating,
leading, building trust, working with a team, managing conflict, and
so forth—has come out of OB research.
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Human Relations and Behavioral

Science Theories
• The early advocates of behavioral approach were Robert Owen, Elton
Mayo, Hugo Munsterberg, Mary Parker Follett, and Chester Barnard.
• They all believed that people were the most important asset of the
organization and should be managed accordingly.
• Their ideas provided the foundation for such management practices as
• employee selection procedures,
• motivation programs, and
• work teams.
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A. Human Hawthorne Studies

Relation Theory
Theory of Participative
Human Relations and Management
Behavioral Science
Theories Theory of Human
Needs
B. Behavioral
Theory X and Y
Science Theory
Two Factor Theory
Theory Z
The Hawthorne Studies

First Phase: Second Phase:
Sequence of illumination Experiments beginning in
tests from 1924 to 1927 1927 focused on the relay
assembly department
Coined in 1950 by Henry A.

Landsberger when analyzing
earlier experiments from
1924–32 at the Hawthorne
Works
Third Study: Simultaneous Study:

Mass interview with the Bank wiring test room
employees
Source: Management and The Worker: 1939
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Illumination Tests
Employees taking part in Illumination Studies: 1930
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Illumination Studies
• Set out to determine the effects of lighting on worker efficiency.
• Accounts of the study revealed no significant correlation between
productivity and light levels.
• The results prompted researchers to investigate other factors affecting
worker output.
• Researchers doubted that the output increased not due to lighting but
because employees thought that they were monitored individually.
Illumination Studies
• Research results were not conclusive. However researchers assumed
following factors effected the efficiency of employees
• Choosing one’s own co-worker
• Working in a group
• Being treated as special
• Having a sympathetic supervisor
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Relay Assembly Room
Relay Assembly Room

• A research conducted to know the effect of rest period and working
hours on efficiency.
• Researchers were finding answers to questions like:
• Why output declined in the afternoon?
• Did they need rest period?
• What was the impact of changes in equipment?
• What were the effects of shorter work day?
• What role did worker attitude play?
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Relay Assembly Room

• Researchers were unsure if productivity increased in this experiment
because of
• the introduction of rest periods
• shorter working hours
• wage incentives
• the dynamics of a smaller group
• or the special attention the women received
• However, they concluded that attitude of the employees were
more significant factor in increasing the productivity.
• Introduction of Elton Mayo and Fritz Roethlisberger - 1928
Interview Process
3
Source: Management and The Worker:
27
Interview Process
• Employees were asked a series of direct and indirect questions.
• Employees didn’t respond well to scheduled and direct questions.
• Later, employees were asked indirect questions and allowed to have
free talks.
• The findings were
Interview Process Findings

• A complaint of employee is symptom of personal disturbance and its
cause may be deep seated.
• Objects, persons and meaning becomes satisfiers and dissatisfies as
per the personal situation of the employees.
• An employee’s social past, his/her present interpersonal relation,
personal preferences, sentiments, desires and interest forms the
personal situation.
• An employee derives meaning and value to an event, object and
features of working environment on the basis of his/her position or
status.
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Interview Process Findings

• An employee's perception of his/her social status and expected
social reward is derived from social organization which is in terms
effected by system of values in organization from which the
employee derive satisfaction and dissatisfaction.
• The social demand of the worker are influenced by social experience
in groups both inside and outside the work plant.
• The behaviour of an employee is impacted by group behaviour.
Bank Wiring Test Room
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Bank Wiring Test Room

• To identify the effect of wage incentives to group activity or output.
• The study of fourteen men in a room.
• Expected that highly efficient worker would pressure less efficient
worker to become efficient.
• However, there was no change in productivity of less efficient
employee. The reverse was true.
• Employee developed quota system. This system was vigorously
applied through different social and peer pressure means.
• They argued that it was for the protection of job of less efficient
employee.
Variables Discussed
Independent: Confounding:
Light Duration of Participant
Illumination work days Attention Reactivity
Food Humidity Temperature Participants
Social Norms Expectations
Ventilation Rest Brakes Performance
Work Group Feedback
Wages Supervision
Dependent:
Productivity Attendance Morale
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Findings
• Mental attitudes, proper supervision, informal social relationships
experienced in a group were key to productivity and job satisfaction.
• Employees often did all sorts of non-logical things in order to belong
in the group.
• Employees believed in a sense of common purpose and value of their
work.
Findings
• Informal organization constituted by the activities, sentiments,
interactions, norms, and personal and professional connections of
individuals and groups that had developed over extended periods of
time makes organization stronger.
• The social system, which defined a worker’s relation to her work and
to her companions, was not the product of rational engineering but of
actual, deep-rooted human associations and sentiments.
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Conclusion of Hawthorne Studies

Social Unit
• A factory is not techno-economic unit but a social unit involving men and their
social sentiments.
• Social characteristics plays an important role in motivating people.
Group Influence
• Pressure of group rather than management demands had larger influence in the
productivity of employees.

Group Behavior
• Group values and behavior can dominate or even supersede individual
propensities.
Motivation
• Human and social motivation are more important than only monitory
incentives.
Supervision
• A friendly and interest taking supervisor get cooperation and better results from
the subordinates.
32

Working Condition
• Increase in productivity and improved working conditions are directly related.
Employee Morale
• Both individual and group employee morale has profound effect on
productivity.
Communication
• Participative decision making and explanation of logic behind various decisions
improve output.
Balanced approach
• Problems of employees cannot be solved by considering only one factor.
• Whole inter-related situation should be improved to solve a situation.
• This can be achieved by discussing the situations of employees.
• This helps in achieving better results.
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Theory of Participatory Management

• Huge contribution of Mary Parker Follet in development of this
theory.
• Human element in workplace is important factor for increasing
productivity.
• Vertical and horizontal communication should be given equal priority.
• The office working environment should be participatory.
• Involvement of employees in decision making process increases their
efficiency and productivity.
• Management should make decision on the basis of employee
suggestions.
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Theory of Human Needs

• Developed by Abraham Maslow.
• Explains the need of human being in the form of hierarchy.
• Lower level needs should be satisfied first then only people can focus
on higher order needs .
• Understanding the need hierarchy of employee helps management to
manage and motivate them.
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Theory X and Y
• Developed by Douglas McGregor.
• This theory hosts two contrasting theories that explained how
managers' beliefs about what motivates their people can affect their
management style.
• These theories are labelled as Theory X and Theory Y.
• Theory X and Theory Y suggesting two aspects of human behavior at
work:
1. Negative aspect: explained by Theory X.
2. Positive aspect: explained by Theory Y.
Theory X
According to McGregor, Theory X management assumes the following:
• Work is inherently distasteful to most people, and they will attempt to
avoid work whenever possible.
• Most people are not ambitious, have little desire for responsibility,
and prefer to be directed.
• Most people have little aptitude for creativity in solving organizational
problems.
36
Theory X
• Motivation occurs only at the physiological and security levels of
Maslow’s hierarchy of needs.
• Most people are self-centered. As a result, they must be closely
controlled and often coerced to achieve organizational objectives.
• Most people resist change.
• Most people are gullible and unintelligent.
Theory Y
In strong contrast to Theory X, Theory Y management makes the
following assumptions:
• Work can be as natural as play if the conditions are favorable.
• People will be self-directed and creative to meet their work and
organizational objectives if they are committed to them.
• People will be committed to their quality and productivity objectives if
rewards are in place that address higher needs such as self-fulfillment.
• The capacity for creativity spreads throughout organizations.
• Most people can handle responsibility because creativity and
ingenuity are common in the population.
• Under these conditions, people will
Collection seek
of Nitesh responsibility.
Khatiwada 74
37
Two factors theory

Also known as Motivation-Hygiene Theory or dual-factor theory
• Developed by Fredrik Irving Herzberg.
• According to this theory that there are two factors that an
organization can adjust, to influence motivation in the workplace.
1. Motivators: Which can encourage employees to work harder.
2. Hygiene factors: These won’t encourage employees to work harder but
they will cause them to become unmotivated if they are not present.
38
Two factors theory

According to Herzberg, the opposite of “Satisfaction” is “No satisfaction”
and the opposite of “Dissatisfaction” is “No Dissatisfaction”.
39
Theory Z
• It is Dr. William Ouchi's so-called "Japanese Management" style
popularized during the Asian economic boom of the 1980s.
• Focused on increasing employee loyalty to the company by providing a job
for life with a strong focus on the well-being of the employee, both on and
off the job.
• According to Ouchi, Theory Z tends to promote stable employment, high
productivity, and high employee morale and satisfaction.
Theory Z
Theory Z is characterized by:
• Long-term employment
• Job security
• Collective responsibility
• Implicit and informal control with explicit and formalized measures
• Collective decision making
• Slow evaluation and promotion
• Moderately specialized careers
• Concern for a total person including the family life
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Contribution
• Brought to light ideas concerning
• Motivational influences
• Job satisfaction
• Resistance to change
• Group norms
• Worker participation
Contribution
From the leadership point of view organizations that do not pay
• Sufficient attention to ‘people’ and ‘cultural’ are consistently less
successful than those that do
• Sufficient attention to people and the deep sentiments and
relationships connecting them are consistently less successful than
those that do.
• “The change which you and your associates are working to effect
will not be mechanical but humane.”
41
Decision Theory
• It was developed by Herbert Simon who received Nobel Prize for the
same.
• Decision theory is an interdisciplinary approach to arrive at the
decisions that are the most advantageous given an uncertain
environment.
• This theory focuses on managerial decisions.
• As per this theory decisions are made through rational choice among
different alternatives available at a given time.
• It is a choice-making activity and choice determines management’s
activity.
Decision Theory
• Descriptive, prescriptive, and normative are three main areas of
decision theory and each studies a different type of decision making.
• Simon's decision model is based on two concepts (1) bounded
rationality and (2) satisficing.
• Bounded rationality: rational decision making is constrained by the
limitation of knowledge, resource, etc.
• Satisficing: Maximization is not possible in decision making. The decision
makes should “satisfice” and achieve the satisfactory outcome.
Administrative man always choose the course of action that fulfills the
minimum requirement of the situation.
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Steps of making a rational decision:

1. • Define the problems clearly
2. • Define Decision premise
3. • Identify relevant or potential alternatives
4. • Evaluate the alternatives
5. • Select the best course of action
6. • Implement the selected alternative
7. • Evaluate and review the results
Contribution of Decision Theory

• In the field of management the decision theory provides guidelines for
the manager to make a decision and solve problems.
• This theory provides the “science” of improved organizational
decision making through quantitative methods.
• The theory makes the path for studying the process by which
administrative organization makes decisions.
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Limitations of Decision Theory

• This theory doesn’t take total view of the management.
• The consideration of this theory is still very limited and narrow.
• It focuses only on decision making issues.
• This theory is limited to economic rational.
Management Science Theory

• Initiated by British Government during WW II to find out the cause of
loss in war and find out solutions.
• Later identified as Management Science Theory.
• The theory applies statistical and mathematical techniques to solve
complex problems in business.
• It focuses on solving technical rather than a human behavior
problems.
• It used techniques like linear programming, economic order quantity
(EOQ), game theory, queuing theory etc. to solve the problem.
44
Three main branches of MST
Management
Science Theory
Quantitative Operations Management

Management Management Information System
Quantitative Management
• Utilizes mathematical techniques such as linear
programming, modeling, queuing theory, etc. to help
managers make the right decisions.
Operations Management
• It provides managers with a set of techniques that they can
use to utilize an organization’s production system to
increase efficiency.
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Management Information System

• It helps managers design information
systems that provide information about
events occurring within and outside an
organization.
Contribution of MST
• This theory helps to develop quantitative tools to aid decision making.
• Provides important contributions in the areas of production and
operation management.
• This theory provides a new way to think about the complex
managerial problems of the future and prescribes a basis to manage
these problems proactively.
• This theory enhances the manager's understanding of overall
organizational processes.
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Limitations of MST
• This theory ignores the importance of people, relationships and other
non-quantifiable factors.
• The assumptions used for quantifying decision making do not match
real-world situations.
• This theory is not substituted of management functions. It prescribes
a limited number of tools for the specific use in solving problems.
• The techniques cannot be fully accountable for individual behavior
and attitudes.
• The assumptions of this theory may not be realistic.
SYSTEM THEORY OF
MANAGEMENT
Chapter - 3
47
THE CONTINGENCY
THEORY
Chapter - 3
EMERGING
MANAGEMENT
CONCEPTS
Chapter - 3
48
Workforce Diversity
Knowledge Management
Emerging Management
Concepts
Outsourcing
Learning Organization
1. Workforce Diversity
49
1. Workforce Diversity: Benefits

1. • Variety of Perspective
2. • Increased Creativity
3. • Increased Productivity
4. • Improved Performance
5. • Brand Reputation
6. • Better Decision Making
7. • Higher Employee Engagement
8. • Improved Hiring Results
1. Workforce Diversity: Limitations
1. • Poor Focus on Leadership Qualities
2. • Chances of Conflicts
3. • Decrease in Mutual Trust
4. • Creating Communication Problems
5. • Increase in Complaint
6. • Difficult to apply
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2. Knowledge Management
• Process of collecting, organizing, classifying and disseminating
information throughout an organization.
• Two types of knowledge
• Tacit Knowledge: from personal experience, skills, understanding and
knowledge gained by personal study.
• Explicit Knowledge: Learnt from external sources such as working
manual, guidelines, legal circulars etc.
Knowledge Management: Components
Process
Promoting knowledge through goal review
Story telling
Demonstrating values practices and ethics
Technology, Structure and

Culture
Supporting process
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Knowledge Management: Process

Knowledge Discovery
Knowledge Capture
Knowledge Sharing
Knowledge Application
KM Implementation Process
1. • Establish knowledge management program objective
2. • Prepare for change management
3. • Define a high-level process as a foundation
4. • Determine and prioritize technology needs
5. • Assess current state
6. • Build KM implementation roadmap
7. • Implementation
8. • Manage and improve knowledge management programs
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3. Outsourcing
• Outsourcing is the process of assigning outside or other organization to
complete one’s organization task.
• It is assigning an organization’s task to some other organization.
• It is done in order to achieve efficiency in doing a work.
• The company which assigns the task is called outsourcing companies.
• The outsourcing companies assign the task through contracts and
agreements.
• Task are assigned to those companies that are efficient in doing the things
better than the outsourcing companies.
Outsourcing
• In outsourcing, companies assign some routine office task to outside
companies.
• For example: Majority of the chip building companies like Qualcom, Apple,
Mediatak, Google, etc. outsource their chip building process and platform to
TSMC.
• By outsourcing, companies can get mundane task or too much technical part
out of their way and focus more on the core process of business.
• For example: Banks in Nepal outsource the security guard, cleaning and
sometimes teller staff to other companies.
• Freelancing is also a large outsourcing platform.
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Outsourcing Sectors
• Management professionals
• Supply of human resources
• Certain process of final production
• Complete production
• Distribution of goods and services
Outsourcing Objectives
• To reduce cost of production
• To maintain quality in goods and services
• To supply goods and services promptly
• To improve managerial efficiency
• To concentrate only on efficiency of organization
• To reduce over dependency on internal resources
• To manage risk
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4. Learning Organizations
• Knowledge is power of organization.
• Organization should convert into learning centers to create new knowledge.
• It is the only way to lead today’s competitive market.
• Hence, more emphasis should be given in learning and acquiring more
knowledge.
• It helps to become competitive.
Learning Organizations: Features

1. System Thinking
2. Personal Mastery
3. Mental Models
4. Shared Vision
5. Team Learning
55

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Amity Colleg - BBS I 5/18/2021

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Early Management Pioneers

1. Robert Owen (1771-1858)

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Early Management Pioneers

2. Charles Babbage (1792-1871)

Early Management Pioneers

Henry Robinson Towne (1844-

Classical Theories of Management

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Classical Theories of B. Administrative

A. Scientific Management Theories

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A. Scientific Management Theories

Motion Study Time Study Fatigue Study Rate Setting

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A. Scientific Management Theories

A. Scientific Management Theories

1. Science rather than rule of

2. Harmony rather than

Principles of Scientific 3. Cooperation rather than

5. Selecting and Developing

Principles of Scientific Management

Principles of Scientific Management

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Principles of Scientific Management

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Principles of Scientific Management

Use of SMT now?

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Principles of Management (AMT)

2. Authority and Responsibility

Principles of Management (AMT)

Principles of Management (AMT)

Principles of Management (AMT)

Principles of Management (AMT)

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Principles of Management (AMT)

12. Stability of Tenure of Personnel

Principles of Management (AMT)

14. Esprit de Corpse

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The Bureaucratic Theory of Management

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Human Relations and Behavioral

Human Relations and Behavioral

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