Lecture 1 Intro

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INTRODUCTION TO MANAGEMENT
Lecture one
What
Is
Management?
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Definition of Management
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Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT
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Historical Perspective
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Practice of management is as old as the

human race but its theories and conceptual
frameworks are of recent origin.
Most of management thoughts are twentieth

century phenomenon.
Industrial Revolution
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 Starting in the eighteenth century in Great Britain.
 The major contribution of the Industrial Revolution was the

substitution of machine power for human power.
 These large, efficient factories using power-driven equipment

required managerial skills
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Industrial Revolution
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 Managers were needed to:

 forecast demand,
 ensure that enough material & machines were on hand to make
products,
 assign tasks to people, direct daily activities,
 coordinate the various tasks,
 work standards were maintained,
 find markets for the finished products.
Adam Smith
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 In 1776, Adam smith published a classical economics doctrine, the wealth of

nations.
 The breakdown of jobs into narrow and repetitive tasks.
 10 individuals, each doing a specialized task, could produce about 48,000

pins a day among them. However, if each person worked separately and
had to perform each task, it would be quite an accomplishment to produce
even 10 pins a day.
 Division of labor increased productivity by increasing each worker's skill

and by saving time lost in changing tasks.
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The Evolution of Management

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 Classical Management Movement
 Behavioral Management Movement
 Quantitative Management Movement
 Modern Management Movement
Classical Management Movement

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 A set of management theories that focus on increasing the

efficiency of the organization as a whole through the
emphasis on the relationship of managers and employees.
 The Classical Management Movement arose between 1885
– 1940
 The classical management perspective includes two main
schools of thought:
 Scientific management and
 Classical organization theory.
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 Features
 Strict CONTROL of workers
 Absolute CHAINS of COMMAND
 PREDICTABILITY of behavior
 UNIDIRECTIONAL downward influence
 Simple: Promote principles of SPECIALIZATION, STANDARDIZATION, and PREDICTABILITY
 Strict rules & regulations regarding . . .
 how work is accomplished,
 who could speak to whom and when, and
 managing through fear.
 Problems
 Creativity and intelligence are underutilized
 Increased dissatisfaction
 Decreased motivation and commitment to task and organization
 Decreased communication effectiveness and satisfaction

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Scientific Management (Taylor’s Theory)

 Relation between tasks and workers.
 Maximize worker capacity and profits.
 Written rules and procedures.
 Worker selection to match the task.
 Pay according to performance level.
 Division of work.
 Managers are responsible for planning, training and
evaluation.
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Classical Organization Theory

 Where as Scientific Management focused on employees as
individuals and their tasks, Classical Organization Theory
dealt with total management organizations (structure of
organizations)
 Classical organization theory can be studied by discussing two
main theories:
 Fayol’s Administrative Theory
 Weber’s Theory of Bureaucracy

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 Classical Organization Theory (Fayol’s Administrative Theory)

 Fayol focused on how managers should accomplish their
managerial duties (Functions of Administration)
 Fayol's Five Elements of Management (Managerial Objectives)
 Planning
 Organizing
 Command
 Coordination
 Control
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 Classical Organization Theory (Weber’s Theory of

Bureaucracy)
 Weber focused on Organizational Structure.
 Bureaucracy allows for the optimal form of authority -
Formal authority.
 Clarity of responsibility and relationship.
 Arranged hierarchy.
 Defined rules and procedures.
Behavioral Management Movement

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 In the 1920s and 1930s, it was convinced that Scientific

Management was incomplete.
 The “Behavioral Management Movement” concerns with
 Human Psychology, Human Relations.
 Motivation.
 Leadership.
 The Behavioral Management Movement emphasized the

importance of understanding human behavior and motivating
employees toward achievement
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 Human Relations Movement

 Hawthorne Studies of the Western Electric Company began as an
attempt to investigate how characteristics of the work setting –
specifically the level of lighting or illumination – affect worker
fatigue and performance.
 It was found that many factors influence worker behaviour and
performance including manager's behaviour or leadership approach.
 From this view emerged the human relations movement, which
advocates that supervisors be behaviourally trained to manage
subordinates in ways that enhance their cooperation and increase their
productivity.

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 Human Relations Movement

 The Human Relations Movement replaced Scientific Management as a
primary management method during the 1930s and 1940s.
 It proposed that better human relations could increase worker
productivity.
 Maslow hierarchy of human needs
 Everyone has these needs … Once a need is satisfied, it becomes unimportant
and the next higher need becomes an important factor in a person’s life
 McGregor Theory X vs. Theory Y
 Theory X: managers were required to coerce, control or threaten employees in
order to motivate them
 Theory Y: managers believed that people are capable of being responsible and
mature
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Organizational Behavior
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 The field of study concerned with the actions (behavior) of people at work is
called organizational behavior (OB).
 Organizational Behavior surfaced in the late 1950s and is ongoing
 Much of what currently makes up the field of :
 Human resources management,
 Motivation,
 Leadership,
 Trust,
 Teamwork, and
 conflict management

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 Strengths
 It is addressed against the mechanistic weaknesses of the scientific
theories.
 Focuses on the idea that employees are valuable resources not tools.
 New understandings; motivation, group dynamics, leadership are taken
into consideration.
 Weaknesses
 Difficulty in predicting human behavior because of complexity of
individual behavior
 Individual needs were given too much priority over the importance of the
collective organizational ones.
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Quantitative Management Movement

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 Centers on adapting mathematical models and
processes to management situations.
 There are 3 major areas:

 Management Science
 Operations Management
 Management Information Systems

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Management Science
 Deals with the development of mathematical models to
assist in:
 Decision Making
 Problem Solving
 Develops Advanced Mathematical / Statistical, Tools /

Techniques for managers
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Operations Management
 Centers more on application of Management Science to
organization.
 Focus on the application of mathematical & statistical
tools to managing an organization’s process and systems.

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Management Information Systems

 A system created specifically to store & provide
information to managers
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Modern Management Movement

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 It is a synergistic product.
 The Classical, Behavioral and Quantitative Movement, with Systems &
Contingency Management Theory integrated to form the framework of the

Modern Management Movement
 Approaches to modern management includes:

 The Process Approach.
 The Systems Approach (System Theory)
 The Contingency Approach (Contingency Theory)
 The Strategic Management Approach
 The Japanese Style Management Approach.
 The Excellence Approach.

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The Process Approach

 The process approach views management as a process of
getting things done through and with individuals who are
operating in organized groups.
 Importance of dealing with PLANNING
(decision ORGANIZING
each management activity making)
as a process starts by
planning and ends by
CONTROLLING LEADING
follow up.
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 The Systems Approach (System Theory)

 A "system“ consists of connected parts joined to form a
whole in which the coordinated and combined effect of
the subsystems creates synergy.
 The two basic types of systems are:
 Closed systems that are not influenced by and do not
interact with their environment.
 Open systems that recognize and respond to their
environment.

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 The Systems Approach (System Theory)

 Organizations are open systems as they interacted with the
environment
 takes resource (inputs) from the larger system (environment), processes
these resources, and returns them in outputs to the environments
 Systems theory describes the behavior of organizations both
internally and externally.
 Internally, it shows how and why people inside organizations perform
their individual and group tasks.
 Externally, it integrates organizational transactions with other
organizations and institutions.
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 The Contingency Approach (Contingency Theory)

 Emphasizes that a manager’s approach should
vary according to – be contingent on – the
individual and the environmental situation.
 Contingency theory is a problem-solving approach
that considers all major factors in a situation
before making a decision.

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 The Contingency Approach (Contingency Theory)

 The principles of Contingency Theory:
 When a manager is confronted with a problem or a
situation, he must examine important contingencies, to
determine which of several potential solutions may be
appropriate.
Solution A
Problem or Contingencies
Solution B
situation groups
Solution C
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The Strategic Management Approach

 Strategy: A plan of actions to achieve
organizational goals
 Strategic management: A set of Decisions and
Actions that result in the Formulation and
Implementation of plans designed to achieve
the organization’s Objectives.

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 The Japanese Style Management Approach

 Theory Z: describes the unique management practices
which were normally associated with successful Japanese
corporations. These practices include:
 Close relationship between managers and employees.
 Long – term employment.
 Development of employees talents.
 Team work.
 Job rotation.
 Collective decision making.
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 The Excellence Approach

 Was first introduced in early 1980s
 Focus of excellence management approach is
“improving management in order to gain or maintain
excellence within a corporation”
 The excellence approach dictates that effective
organizations continue to strive for improvement.
 Malcolm Baldrige Award
 EFQM Excellence Model
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20/05/1436

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

Practice of management is as old as the

Most of management thoughts are twentieth

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

 Starting in the eighteenth century in Great Britain.

 The major contribution of the Industrial Revolution was the

 These large, efficient factories using power-driven equipment

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

 Managers were needed to:

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

 In 1776, Adam smith published a classical economics doctrine, the wealth of

 The breakdown of jobs into narrow and repetitive tasks.

 10 individuals, each doing a specialized task, could produce about 48,000

 Division of labor increased productivity by increasing each worker's skill

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

The Evolution of Management

 Classical Management Movement

 Behavioral Management Movement

 Quantitative Management Movement

 Modern Management Movement

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

Classical Management Movement

 A set of management theories that focus on increasing the

Classical Management Movement

Classical Management Movement

Scientific Management (Taylor’s Theory)

Classical Management Movement

Classical Organization Theory

Classical Management Movement

 Classical Organization Theory (Fayol’s Administrative Theory)

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

Classical Management Movement

 Classical Organization Theory (Weber’s Theory of

Behavioral Management Movement

 In the 1920s and 1930s, it was convinced that Scientific

 The Behavioral Management Movement emphasized the

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

Behavioral Management Movement

 Human Relations Movement

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

Behavioral Management Movement

 Human Relations Movement

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

Behavioral Management Movement

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

Quantitative Management Movement

 Centers on adapting mathematical models and

processes to management situations.

 There are 3 major areas:

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

Quantitative Management Movement

 Develops Advanced Mathematical / Statistical, Tools /

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

Quantitative Management Movement

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

Quantitative Management Movement

Management Information Systems

Prepared by … Dr. Magdy A. Khalaf PQI - AASTMT

Modern Management Movement

 The Classical, Behavioral and Quantitative Movement, with Systems &

Contingency Management Theory integrated to form the framework of the