#1.
THE HISTORY OF MANAGEMENT THOUGHT
 Why Management History?
• To add perspective to the present…
• To understand where ideas came from
• To see the role of social, legal, political, economic,
technological factors
 Management in the Past
• Management existed, but…..
– Often hereditary (usually male…)
– One-trial learning
 The Case of Egypt (40,000 BC)
• First large state
• Centralized government
– Provincial governors (monarchs)
– Bureaucrats (taxation, irrigation)
– Based on writing (first Information Revolution)
• Large scale construction projects
– Pyramids, Sphinx, temples
– Workforce: thousands of peasants, possibly slaves
(prisoners of war)
 Farming in Rome
• Cato the Elder (234 - 149 BC)
• De re rustica or Roman Farm Management
• Instructions for the management of a commercial
farm
– Absentee landlord
– Based on slave labor
– Wine grapes or olives
• His manual on running a farm (De Agri Cultura or "On
Agriculture") (ca. 160 BC) is his only work that survives
completely. It is a miscellaneous collection of rules of
husbandry and management, including sidelights on
country life in the 2nd century BC.
• Adopted by many as a textbook at a time when
Romans were expanding their agricultural activities into
larger scale and more specialized business ventures
geared towards profitability, De Agri Cultura assumes a
farm run and staffed by slaves.
• Cato advises on hiring gangs for the olive harvest and
was noted for his chilling advice on keeping slaves
continually at work, on reducing rations for slaves when
sick, and on selling slaves that are old or sickly. Intended
for reading aloud and discussing with farm workers, De
Agri Cultura was widely read and much quoted
(sometimes inaccurately) by later Latin authors. Cato
the Elder ranked the vineyard as the most important
aspect when judging a farm. This was because of the
profitability of the wine trade during that time. Grain
pastures were ranked sixth due to the grain crisis.
 Cato’s Advice
PLANNING
• “When the weather is bad and field work cannot go
on, carry the manure out to the manure heap. Clean
thoroughly the ox stable, the sheep pen, the yard…”
ORGANIZING
• How an olive orchard…should be equipped…a
foreman, a foreman’s wife, five laborers, three ox
drivers, one swineherd, one shepherd, thirteen persons
in all….”
LEADING
• “Have the work oxen cared for with the greatest
diligence and to some degree flatter the ox drivers so
that they will more cheerfully care for the oxen”
CONTROLLING
• When the head of the household comes to the
farmhouse...he should make the round of the farm; if
not on the same day at least on the next.
 A Medieval Farm: Division of Labor
• 5th and 15th Century
 The Manor Economy
• The manor, or lord’s estate or fief, was the heart of
the medieval economy.
• Peasants and lords were bound by mutual obligation
(feudal contracts).
• The peasants worked for the lord.
• In exchange, the peasant received protection and a
small amount of land to farm.
 Sun Tzu and The Art of War
• Dates uncertain –
– Some say he lived ca. 544 BC to 496 BC, others place it
closer to 600 BC
• A renowned Chinese general
• ancient Chinese military treatise on warfare and how
that applies to military strategy and tactics.
• seen in Asia as a guide to management (Planning and
Strategy)
Principles:  The Catholic Church
– Moral cause for battle
– Leadership – wise, courageous, benevolent yet strict
– Awareness of environmental conditions – events and
the playing field
– Organization and discipline
– Espionage
 Sun Tzu and The Art of War
“Now the general who wins a battle makes many
calculations in his temple ere the battle is fought. The
general who loses a battle makes few calculations
before hand. It is by attention to this point that I can
see who is likely to win or lose.”
 Management Before Industrialization
• Hammurabi (First Babylonian Dynasty)
- Code of Law of Ancient Mesopotamia. The code has
been seen as an early example of a fundamental law,
regulating a government — i.e., a primitive constitution
• Confucius
- (Chinese teacher, editor, politician, and philosopher of
the Spring and Autumn period of Chinese history) -
Personnel selection by merit, early bureaucracy, and
division of labor
• Kautilya (Chanakya or Vishnugupta)
- Public administration, trait approach for selecting
leaders, use of staff for advising, and job descriptions.
he is considered the pioneer of the field of political
science and economics in India
 Management Before Industrialization
• Moses - organization, span of control, delegation, and
the exception principle. Torah: "Jewish Instruction,
Teaching"
• Socrates - transferability of managerial skills. Socratic
method, or elenchus, a commonly used tool in a wide
range of discussions, a form of cooperative dialogue
between individuals, based on asking and answering
questions to stimulate critical thinking and to draw out
ideas and underlying presumptions.
• Aristotle - specialization of labor, departmentation,
delegation, synergy, leadership and scientific method
established a library in the Lyceum which aided in the
production of many of his hundreds of books
• Rome - span of control as well as a model for later
civilizations
- Oldest living organization
- The Hierarchy of the Catholic Church consists of its
bishops, priests, and deacons
- In canonical and general usage, it refers to those who
exercise authority within a Christian church.
- In the Catholic Church, authority rests chiefly with the
bishops, while priests and deacons serve as their
assistants, co-workers or helpers.
 Feudalism and the Middle Ages
• Feudalism was the medieval model of government
predating the birth of the modern nation-state. Feudal
society is a military hierarchy in which a ruler or lord
offers mounted fighters a fief (medieval beneficium), a
unit of land to control in exchange for a military service.
• Caused by the development of free people as tenant
farmers, growth of large estates, political disorder,
economic, social, and political chaos.
• Tied people to the land, fixed rigid class systems,
established landed aristocracy, stopped education,
caused poverty and ignorance, and stifled human
progress until the Age of reformation.
 Commerce
• Marco Polo (Venetian Merchant) travels to the Far
East (Central Asia nad China) - sees the “Rule of Ten” in
the Tatar tribes
• Craft Guilds - makers of goods, regulated job access
• Merchant Guilds - buyers & sellers of goods
• Pay based on performance - did not get paid until
work was returned to the merchant
 Growing Trade
• Luca Paciolli's system of double-entry accounting -
the first management information system (cash &
inventory position and a check on cash flow) developed
in 15th century.
• Summa de Arithmetica, geometrica, proportioni, et
proportionalita
 The Liberty Ethic
• freedom from control, interference, obligation,
restriction, hampering conditions, etc.; power or right of
doing, thinking, speaking, etc., according to choice,
freedom from captivity, confinement, or physical
restraint
• "the removal of controls" in order to encourage
economic development
• Thomas Hobbes's - Leviathan : some great power
must exist to bring order from chaos (1651)
• Developed some of the fundamentals of European
liberal thought: the right of the individual; the natural
equality of all men; the artificial character of the
political order (which led to the later distinction
between civil society and the state); the view that all
legitimate political power must be "representative" and
based on the consent of the people; and a liberal
interpretation of law which leaves people free to do
whatever the law does not explicitly forbid.
John Locke's Concerning Civil Government (1690)
• People have natural rights to property, contracts, a
redress of grievances, and to freely choose those who
are to govern
• Natural rights are to be protected through a civil law
in order to preserve more perfectly their life, liberty,
and property
• His work set the stage for the Declaration of
Independence
 The Market Ethic
Adam Smith - Wealth of Nations (1776)
• Market forces were far more efficient in allocating
resources and more “just” in rewarding individuals who
produced the wealth than Mercantilism (governemnt
regulated the economy)
• Smith laid the foundations of classical free market
economic theory. The Wealth of Nations was a
precursor to the modern academic discipline of
economics.
• In this and other works, he developed the concept of
division of labour, and expounded upon how rational
self-interest and competition can lead to economic
prosperity.
 The Market Ethic
• Specialization of labor
• Increase performance
• Loss of mental exertion - “dexterity at his own
particular trade seems... to be acquired at the expense
of his intelletual, social, and martial virtues”
 Summary
• Early management thought was dominated by cultural
values that were antibusiness
• Three forces, or ethics, interacted to provide for a
new age of industrialization
- Liberty Ethic
- Market Ethic
 History of Management
• Management thought developed in the mid-late
1800’s
• Ran parallel with the industrial revolution
– Prior to that time organizations were small
– Agrarian society moved to a mass production society
 History of Management Thought
 The Industrial Revolution
• A long-term process, not a single event
– Protestant Work ethic
– Political changes (American, French revolutions)
– Invention of steam power
• The First Industrial Revolution from 18th to 19th
centuries in Europe and America.
• The period when most agrarian, rural societies
became industrial.
• Iron, textile industries
 The 2nd Industrial Revolution
• between 1870 and 1914, just before World War I.
• It was a period of growth for pre-existing industries
and expansion of new ones, such as steel, oil and
electricity, and used electric power to create mass
production.
• Major technological advances during this period
included the telephone, light bulb, telegraph and the
internal combustion engine.
• Mass production through standardization and
specialization
• Transportation
– Steam powered ships
– Railroads
 The 3rd Industrial Revolution
• The Third Industrial Revolution, or the Digital
Revolution, refers to the advancement of technology
from analog electronic and mechanical devices to the
digital technology available today.
• The era started during the 1980s and is ongoing.
• Advancements during the Third Industrial Revolution
include the personal computer, the internet, and
information and communications technology (ICT)
 The 4th Industrial Revolution
• The Fourth Industrial Revolution builds on the Digital
Revolution, representing new ways in which technology
becomes embedded within societies and even the
human body.
• The Fourth Industrial Revolution is marked by
emerging technology breakthroughs in a number of
fields, including robotics, artificial intelligence,
nanotechnology, quantum computing, biotechnology,
The Internet of Things, 3D printing and autonomous
vehicles.
 Five Viewpoints of Management
• Classical - late 1800’s
– Bureaucratic, Scientific, Administrative
• Behavioral - 1930’s, 40’s, 50’s
• Systems - 50’s, 60’s, 70’s
• Contingency - 60’s, 70’s, 80’s
• Quality - 80’s, 90’s
 Assumptions of Viewpoints
• Continuous viewpoints do not replace each other but
have differing perspectives
• All differ on how they view:
– behavior of individuals
– organizational goals
– issues that the organization faces
– how those issues should be resolved
 Large Organizations and New Approaches to
Management
• Economic transformation
– Previously – family farms, small workshops
– After Industrial Revolution – large organizations,
requiring management skills
• New demands on management
– Need for professional managers (as opposed to
owners)
– Need to plan, structure, and schedule activities
– Push to efficiency
– Need for worker training and socialization to factory
work
 Classical Management
• Time period: last half of 1800’s, first part of 1900’s
• Environment:
– Social / Political: little restraint (Robber Barons)
– Economic: manufacturing economy, focus on
efficiency
– Technology: most jobs relatively simple
• Major schools
– Bureaucratic
– Scientific management
– Administrative management theory
 Management Definition
- Management is the attainment of organizational goals
in an effective and efficient manner through planning,
organizing, leading, and controlling organizational
resources.
 The Management Process
 Defining Management
• “The art of getting things done through people” -
Mary Parker Follett
• “Give direction to their organization, provide
leadership, and decide how to use organizational
resources to accomplish goals” - Peter Drucker
• Managers are the executive function of the
organization.
• Building and coordinating an entire system.
• Create systems and conditions that enable others to
perform those tasks
• Create the right systems and environment, and ensure
that the departments or organization will survive and
thrive.
#2. MANAGERIAL SKILLS
 Assumptions of Theory X
• The average human being has an inherent dislike of
work and will avoid it if possible.
• Because of the human characteristic of dislike for
work, most people must be coerced, controlled,
directed, or threatened with punishment to get them to
put forth adequate effort toward the achievement of
organizational objectives.
• The average human being prefers to be directed,
wishes to avoid responsibility, has little ambition, and
wants security above all.
 Assumptions of Theory Y
• The expenditure of physical and mental effort in work
is as natural as play or rest. The average human being
does not inherently dislike work.
• External control and threat of punishment are not the
only means for bringing about effort toward
organizational objectives. A person will exercise
selfdirection and self-control in the service of objectives
to which he or she is committed.
• The average human being learns, under proper
conditions, not only to accept but to seek responsibility.
• The capacity to exercise a relatively high degree of
imagination, ingenuity, and creativity in the solution of
organizational problems is widely, not narrowly,
distributed in the population.
• Under the conditions of modern industrial life, the
intellectual potentialities of the average human being
are only partially utilized.
 Human Resources Perspective
• combines prescription for job tasks with theories of
motivation
• jobs should be designed so that tasks are not
perceived as dehumanizing or demeaning but instead
allow workers to use their full potential
• Abraham Maslow (1908-1970): psychologist
• Douglas McGregor (1906-1964): formulated the
Theory X and Theory Y
 Management Skills
• Three Categories of necessary skills for managing an
department or an organization:
1. Conceptual Skills
2. Human Skills
3. Technical Skills 3. Technical Skills • inability to build a management team characterized
• is the understanding of and proficiency in the by mutual trust and respect
 Management Skills performance of specific tasks
1. Conceptual Skills • includes mastery of the methods, techniques, and  Management Levels in the Organizational
• is the cognitive ability to see the organization as a equipment involved in specific functions such as Hierarchy
whole system and the relationships among its parts engineering, manufacturing, or finance
• involves manager's thinking, information processing, • specialized knowledge, analytical ability, and the
and planning abilities competent use of tools and techniques to solve
• knowing where one's department fits into the total problems
organization and how the organization fits into the • particularly important at lower organizational levels
industry, the community, and the broader business and • as managers move up the hierarchy, technical skills
social environment become less important than human and conceptual
• think strategically - to take the broad, long-term view skills
and to identify, evaluate, and solve complex problems
• needed by all managers but are especially important …Technical Skills
for managers at the top (decision making, resource • preference to technical or quantitative courses rather
allocation, and innovation) than literature, psychology, or sociology
• choose sitting in front of the computer than spending
…Conceptual Skills time with people
• setting priorities • do not think about other people's needs and  First Level Managers
• planning (long- term) concerned only with efficiency • facilitating individual employee performance
• getting into details of a project • solve problems by analyzing data & statistics than • responsible for groups non-management employees
• relating concepts from different sources meet with a group of people • directly responsible for the production of goods or
• getting excited on ideas and concepts • interested with data or things rather people services
• taking a management course is a waste of time • primary concern is the application of rules to achieve
2. Human Skills efficient production, motivate subordinates, provide
• the manager's ability to work with and through other  Relationship of Conceptual, Human, and Technical technical assistance
people and to work effectively as a group member Skills to Management • supervisor, first line manager, section chief, office
• demonstrated in the way a manager relates to other Management Level manager
people, ability to motivate, facilitate, coordinate, lead, • Top Managers
communicate, and resolve conflicts  Middle Managers
• Middle Managers
• allows subordinates to express themselves without • more with linking groups of people such as allocating
• First-Line Managers
fear of ridicule, encourages participation,and shows resources, coordinating teams, putting top
•Nonmanagers
appreciation for employees' efforts management plans and strategies into action
(Individual
• essential for managers who work with employees • responsible for business units and major departments
Contributors)
directly on a daily basis (respect and concern for • Department Head, Division Head, QA Manager
employees)  When Skills Fail
 Top Level Managers
• failure to listen to customers
…Human Skills • primary focus is monitoring the external environment
• misinterpret signals from the market place
• good listener and determining the best strategy
• can't build a cohesive team & execute a strategic plan
• talking & resolving disagreements • responsible for the entire organization
• create a climate of fear in the organization
• involving other people in activities or discussions • setting goals, define strategies for achieving them,
• people stopped thinking creatively, avoiding
• correcting a person on mistaked and letting him/her monitoring, and making decisions
responsibility
know the proper approach • look at long- term future
• poor communication skills
• do not confront a slacker in the group (complain to • communicate shared visions, shape the culture,
• poor treatment of employees
friends) nurture innovation
• failure to clarify direction and performance
• polite and do not want to hurt people's feelings • CEO, Exec. Director, President
expectations
• suppressing viewpoints
 Making the Leap from Individual Performer to a • Each role represents activities that managers  Hierarchical Levels and Importance of Leader and  10 Manager Roles
Manager undertake to ultimately accomplish the functions of Liaison Roles
planning, organizing, leading, and controlling
• All the roles interact

 Informational Roles
• activities used to maintain and develop information
network
• managers spend 75% of their time talking to other
people
Role Activity
Monitor Seek and receive • The importance of the leader role typically declines
information, scan while the importance of the liason role increases as a
periodicals, and reports, manager moves up the organizational hierarchy.
maintain personal
• from being a “doer” to a generalist/ executive  Decisional Roles
contacts.
function • pertain to those events about which the manager
Disseminator Forward information to
• a personal transformation/ becoming a new person must make a choice and take action
other organization
and viewing oneself in a completely new way • often require conceptual as well as human skills
members; send memos
• establishing clear procedures and delegate activities, • initiation of change
and reports, make phone
engaging and coordinating other people • resolving conflicts among subordinates or between
calls.
Spokesperson Transmit information to manager's department and other departments
 Do You Want To Be A Manager? • decisions about how to allocate people, time,
outsiders through
1. The increased workload equipment, money, and other resources to attain
speeches, reports,
2. The challenge of supervising former peers desired outcomes
memos.
3. The headache of responsibility for other people
4. Being caught in the middle Role Activity
 Interpersonal Roles Entrepreneur Initiate improvement
 Manager Activities : Life on Speed Dial projects; identify new
• relationships with others and are related to the
• performs a great deal of work at an unrelenting pace. ideas, delegate idea
human skills
• answers many emails each day responsibility to others.
• the manager represents the organization in his or her
• attend meetings Disturbance handler Take corrective action
formal managerial capacity as the head of the unit
• Paper works during disputes or crises;
• community service resolve conflicts among
• monitor employees' performance Role Activity
Figurehead Perform ceremonial and subordinates; adapt to
symbolic duties such as environmental crises.
 Manager Roles Resource allocator Decide who gets
- “The manager who only communicates or only greeting visitors, signing
legal documents. resources; schedule,
conceives never gets anything done, while the manager budget, set priorities.
who only 'does' ends up doing it all alone.” Leader Direct and motivate
subordinates; train, Negotiator Represent department
counsel, and during negotiation of
 Manager Roles union contracts, sales,
• Role is a set of expectations for a manager's behavior. communicate with
subordinates. purchases, budgets,
• Informational (managing by information) represent departmental
• Interpersonal (managing through people) Liaison Maintain information links
both inside and outside interests.
• Decisional (managing through action)
organization; use e-mail,
phone calls, meetings.
#3 DECISION MAKING
Objectives:
• Learn the characteristics of managerial decisions
• Discuss the different managerial framework/ styles
• Utilize the 6 steps of decision making
❖ Management is filled with risk and uncertainty.
❖ Lack of information and limited time for managers to
make decisions.
 The Case of Coca- Cola
In 1985 Roberto Goizueta, the CEO if Coca-Cola,
decided to make Coke sweeter and rename it to
counter Pepsi- Cola's aggressive claims that its product
tasted better that Coke in consumer taste tests.
Within a month of its introduction, sales of the
sweet New Coke plunged. Goizueta acted decisively and
publicly admitted that he had made a mistake. The
company immediately launched Coca-Cola Classic,
made with the original formula. Consumers once again
began buying Coke.
In spite of the debacle of New Coke, Goizueta
increased the firm's market value from $4.3 billion in
1981 to $180 billion by 1997. Although he made a poor
decision, his rapid recovery from his mistake minimized
the damage to the company and resulted in a successful
outcome.
 Characteristics of Management Decision Making
• Decision making is a process of identifying problems
and opportunities and resolving them.
• made by managers, teams, individual employees,
depending on the scope of the decision and the
structure of the organization.
1. Programmability
✔ programmed decisions
✔ established routines and procedures for
resolving company problems
✔ well-developed procedures are established
for each of the tasks
✔ managers are likely to delegate to
subordinates in order to focus on non-
programmed decisions
✔ non-programmed decisions occur when the situation
is unique and there are no previously established
routines or procedures that can be used.
✔ unstructured, undefined but have important
consequences for the organization
✔ more complicated and difficult to make
2. Uncertainty
✔ the condition when all the information needed to
make a decision is incomplete
✔ ex: new product launching: success of the product
even though the market research done prior to the
decision revealed positive result
3. Risk
✔ the level of uncertainty as to the outcome of a
management decision
✔ has both positive and negative aspects
✔ ex: mutual funds managing: maximize profit
potential of the fund stock portfolio and minimize loss
potential when the market is falling
✔ decisions vary depending on company culture and
size
✔ entrepreneurial firms are more comfortable with
making risky decisions vs. large companies
✔ high technology companies: high risk
✔ moderate risks can tolerate some failures as part of
learning process
✔ risk avoidance: less tolerant (ex: SSS plans cash flow
for 25 yrs based on demographic forecasts)
4. Conflict
✔ opposing goals, utilization of scarce resources and
other priorities
✔ consider the different stakeholders: individuals or
groups who are forced to accept a choice they oppose
will not be committed to the decision
✔ Acceptance by key employee groups such as
executives, managers, front-line employees
✔ Conflict can enhance the quality of the decision by
introducing diverse was of thinking about the
consequences of the decision
5. Decision Scope
✔ effect and time horizon of the decision
✔ involves who is making the decisions and who are
affected by it.
✔ Strategic decisions: encompass a long-term
perspective of 2-5 yrs and affect the entire organization.
Ex: firm growth, profitability goals, markets to enter.
✔ Tactical decisions: short-term of 1 year or less and
focus on sub- units of the organization
✔ determining the distribution of the
department
✔ usually done by middle managers
✔ take into consideration the strategic
direction of the firm
✔ Operational decisions: cover the shortest time
perspective, generally less than a year.
✔ often made on a daily basis and focuses on
the routine activities of the firm such as
production, customer service, supplies
handling
✔ supervisors, front-line employees, teams
✔ must take into consideration both the long-
term perspective of the strategic decisions and
the short-term perspective of tactical decisions
 STAGES IN DECISION MAKING
1. Identifying and Diagnosing the Problem
• problem occurs when performance is below expected
or desired levels
• discrepancy between the current state and a desired
state
• ex: high level of employee turn-over, reduction in
profits, low quality finished goods
• look for possible causes of the problem: diagnose,
gather info, explore possible causes, eliminate as many
causes as possible to focus on the most probable cause
• fully diagnose the problem before attempting to solve
it.
2. Generate Alternative Solutions
• for non-programmed decision making
• suspend judgement until all possible alternatives have
been developed
• use group decision making
3. Evaluating Alternatives
• use a set of decision criteria which are related to the
performance goals of the organization and its sub-units
and can include costs, profits, timeliness
• apply decision criteria
• decision quality is based on facts as costs, revenues,
and product design specifications; problems can be
solved using mathematical techniques
• decision acceptance is based on people's feelings,
occurs when people who are affected by a decision
agree with what is to be done.
4. Choosing the best alternative
• by optimizing or satisficing
• optimizing: selecting the best alternative from among
multiple criterias
• satisficing: involves selecting the first alternative
solution that meets a minimum criterion, complete
information is not available or gathering it is too
expensive
5. Implementing the decision
• put the alternative solution into practice and making
sure it works
• critical step because it requires the support and
cooperation of executives, management, and
employees
• requires commitment
• provide resources (staff, budget) needed for
successful implementation
• exercising leadership to persuade others
• developing communication & information systems
that enable the management to know if the decision
alternative is meeting its planned objectives
6. Evaluating the Results
• achievement of goals
• decision makers establish reasonable goals and
benchmarks to make sound judgements about the
effectiveness of the decision
Decision Making in Groups
• Ex: Recruitment Committee to participate in the
decision to hire a new professor in a university
• acceptance of the decision among group members is
critical
• limiting factor: time to go through all the 6 stages if
decision making
 Benefits and Problems of Group Decision Making process. ✔ managers like to talk to people one-on-one 7. Do something productive during non-productive
BENEFITS PROBLEMS and understand their feelings about the activities: try to multitask.
❖Increased acceptance ❖ Social pressure 2. Devil's Advocate Role problem and the effect of a given decision on
❖Greater pool of ❖ Minority domination • to reduce the threat of group think them. 2. Delegation
knowledge ❖ Logrolling • expected to criticize and challenge decision ✔ concerned with the development of others • the transfer of decision-making authority from a
❖Different perspectives ❖ Goal displacement alternatives that are agreed on by other members of and may take decisions that help others manager to a subordinate or a team at a lower level in
❖Greater comprehension Groupthink the group achieve their goals. the organization
❖ Training ground • creative conflict and tension in the group decision- • should not be confused with participation in which
making process leading to a better solution or one that  Quality Decision Making Skills the group shares decision-making authority with
1. Leadership style is more deeply understood by members of the group 1. Time Management Skills management
Decision- Characteristics Amount of • develop scenarios in which the majority- • adequate time to make effective decisions • teaches subordinates how to make decisions and how
Making Style subordinate sponsored decision alternative could fail or • makes it possible to understand the problem, develop to deal with the consequences of the decision.
participation • promote alternative solutions that challenge several suitable alternatives, evaluate the decision in • CEO focuses on the overall direction and coordination
Decide and Leader solves None the one supported by the group light of goals abd priorities, and establish a workplace while the general manager handles operational
persuade the problem and approach to implement the decision responsibilities for profits and losses
makes decision  Personal Decision Framework
with available 1. Directive Style • Reactive Management: management style of  Effective delegation involves the following steps:
information ✔ used by people who prefer simple, quick, responding to the most urgent problem first when not 1. Determine what you want done. Writing it down can
Discover facts Leader gather Very little, clear-cut solutions to problems enough time is available be helpful.
and decide facts from indirect ✔ do not like to deal with a lot of information • decisions made this way are likely to be 2. Match the desired task with the most appropriate
subordinates involvement and may consider only one or two alternatives haphazard and with major flaw in quality or employee.
and then makes ✔ efficient and rational and prefer to rely on execution 3. Be sure you communicate clearly when assigning
the decision existing rules or procedures for making • ex: overtime working, dealing with crisis tasks. Follow up to make sure the task is fully
Consult and Leader consults Modest amount decisions where you lose control of time and lose sight understood. Set clear deadlines.
decide with individual of participation of the “big picture” 4. Keep communication channels open. Make it clear
subordinates, through being 2. Analytical Style • no time to think about your goals and that you are available for consultation and discussion.
obtaining their presented with ✔ consider complex solutions based on as priorities 5. Allow employees to do the task the way they feel
ideas and the problem by much data they can gather • Proactive Management: management style in which comfortable doing it.
opinions, and the leader ✔ careful consideration of alternatives and problems are anticipted before they become pervasive 6. Trust employees' capabilities. Do not hold high
then makes the then base decisions on objective rational data and time is set aside on both daily and weekly basis to expectations that they can only fail.
decision from management control systems and other plan goals and priorities 7. Check on the progress of the assignment, but do not
Consult with Leader consults Substantial sources rush to rescue the employee at the first sign of failure.
group and with group of amount of ✔ search for the best possible decision based  Effective Time Management Practices 8. Hold the employee responsible for the work and any
decide subordinates, participation by on the information available 1. Make a list of things that need to be done today. difficulties that may emerge, but do so as a teacher, not
gathering their being engaged 2. Plan weekly, monthly, and annual schedule of a police officer.
collective ideas, in the group 3. Conceptual Style activities. 9. Recognize what the employee has done and show
and then makes discussion of the ✔ consider a broad amount of information ✔ weekly: allows you to organize work, school, appropriate appreciation.
the decision problem ✔ however, more socially oriented than those personal, and family activities
Consult with Leader shares High with an analytical style and like to talk to ✔ monthly: for longer term schedules like  Why do managers make bad decisions?
group and problem with involvement of others about the problem and possible travel • relentless demand for decisions from solving minor
decide group and subordinates in alternatives for solving it. ✔ annual: long-term objectives problems to implementing major strategic changes
accept the the decision- ✔ consider many broad alternatives rely on 3. Schedule difficult and challenging activities when you • most are errors in judgment that originate in the
decision made making process information from both people and systems, are at your highest level of energy and alertness. human mind's limited capacity and in the natural biases
by the group, and like to solve problems creatively. 4. Set deadlines.
acting as a coach 5. Answer phone messages and e-mail in batches during Biases:
to the group 4. Behavioral Style a lull in your work schedule. 1. Being influenced by initial impressions
decision-making ✔ often style adopted by managers having a 6. Have a place to work uninterrupted. ✔ past events and trends act as anchors to
deep concern for others as individuals subsequent thoughts and judgments
 ✔ random comment by a colleague
✔ disproportionate weight to the first
information received
2. Justifying past decisions
(even if those decisions no longer seem valid)
3. Seeing what you want to see
✔ selective search for information to support
your point of view
4. Perpetuating the status quo
✔ basing decisions on what has worked in the
past and fail to explore new option, dig for
additional information, or investigate new
technologies
5. Overconfidence
✔ overestimate ability to predict uncertain
outcomes
#4 PLANNING
 PLANNING
❖ Planning is deciding in advance what to do, how to
do it, when to do it and who will do it.
❖ It involves anticipating the future and consciously
choosing the future course of action.
❖ The process of setting objectives and determining
how to best accomplish them.
❖ The most fundamental management function
 Nature of Planning
▪ Planning is goal- oriented
▪ Planning is forward- looking
▪ Planning involves choice
▪ Planning is directed toward efficiency
▪ Planning is a continuous process
 The Importance of Goals and Plans
 Benefits for the Organization
• Rationale for Decisions
• Learn what organization is trying to
accomplish
• Make decisions to ensure that internal
policies, roles, performance, structure,
products, and expenditures will be made in
accordance with desired outcomes
• Standard of Performance
• Serve as performance criteria
• Provide a standard of assessment
• Can be used as a device for controlling
• Guides to Action
• Provide a sense of direction; focus attention
on specific targets
• Direct efforts toward important outcomes
• Helps coordinate managers of the different
functions and divisions of an organization
• Legitimacy
• What the organization stands for - reason for
being
• Symbolizes legitimacy
• Employees identify with overall purpose
• Source of Motivation and Commitment
• Employees’ identification with the
organization
• Motivate by reducing uncertainty
• Useful way of getting managers to participate
in decision making
 Why Planning is Important
• Continuity – planning is an ongoing process in which
managers build and refine previous plans and
continually modify plans at all levels
• Time Management
 The roles of planning and controlling in the
management process.
❑Higher management levels focus on longer time
 A sample means-ends chain for total quality horizons.
management.  Types of Planning
❑ Corporate Planning
❖ planning for the company as a whole, laying down
objectives, strategies, and policies for the entire
organization
❖ done at the top level of management
 How do managers plan? ❑ Group or Seasonal Planning
❑ Objectives ❖ refers to planning for specific groups or section
• Identify the specific results or desired outcomes that within a department or division
one intends to achieve. ❖ formulated mainly at the operating level of
❑ Plan management and has to be approved by higher
– A statement of action steps to be taken in order to authorities
accomplish the objectives.
– A blueprint specifying the resource allocations, ❑ Departmental or Divisional Planning
schedules, and other actions necessary for attaining ❖ includes the plans formulated for various
goals departments or division of an enterprise
❖ determines the scope and activities of a particular
 Process of Planning department
1. Define the Task. ❖ formulated at the middle level of management and
2. Develop your objectives. approved by the top management
3. Identify the Resources
4. Consider Alternative. Analyze and choose among  Levels of Goals/Plans & Their Importance
action alternatives. Develop premises regarding future
conditions.
5. Create the Plan
6. Work the Plan. Implement the plan
7. Evaluate Results
 Limitation of Planning
❑ Lack of accurate information
❑ Time and cost
❑ Resistance to change
❑ Lack of ability to plan
❑ Environmental constraints
 What types of plans do managers use?  Organizational Mission
❑ Short-range and long-range plans • Mission = organization’s reason for existing
• Short-range plans = 1 year or less • Mission Statement
• Intermediate-range plans = 1 to 2 years – Broadly states the basic business scope and
• Long-range plans = 3 or more years operations that distinguishes it from similar types of
organizations
❑People vary in their capability to deal effectively with – May include the market and customers
different time horizons. – Some may describe company values, product quality,
attitudes toward employees
 Strategic Goals and Plans  Hierarchy of Goals  Contingency Plans • Benchmarking
Strategic Goals Specific Situations - unexpected conditions – Use of external comparisons to better evaluate
• Where the organization wants to be in the future • Identify Uncontrollable Factors current performance and identify possible actions for
• Pertain to the organization as a whole – Economic turndowns the future.
– Declining markets – Adopting best practices of other organizations that
Strategic Plans – Increases in costs of supplies achieve superior performance.
• Action Steps used to attain strategic goals – Technological developments
• Blueprint that defines the organizational activities and – Safety accidents  Characteristics of Effective Goal Setting
resource allocations • Minimize Impact of Uncontrollable Factors • SMART (specific, measureable, attainable, realistic,
• Tends to be long term – Forecast a range of alternative timely)
responses to most-likely high-impact • Challenging but realistic
 What types of plans do managers use?  Single- Use Plans: For Goals Not Likely To Be contingencies • Defined time period
• Strategic plans Repeated • Linked to rewards
Strategic plans — set broad, comprehensive, • Single-use plans  Planning for High Performance
and longer-term action directions for the • Only used once to meet the needs and • Central Planning = Traditional Department Group of
entire organization. objectives of a well-defined situation in a planning specialists who develop plans for the
timely manner. organization as a whole and its major divisions and
 Tactical Goals and Plans • Budgets departments and typically report directly to the
• Tactical Goals • Single-use plans that commit resources to president or CEO
- Apply to middle management activities, projects, or programs. • Decentralized Planning = High-Performance
- Goals that define the outcomes that major divisions • Fixed, flexible, and zero-based budgets. Managers work with planning experts to develop their
and departments must achieve own goals and plans
• Tactical Plans ● A program is a complex set of objectives and plans to
- Plans designed to help execute major strategic plans achieve an important, one-time organizational goal What are the useful planning tools and techniques?
- Shorter than time frame than strategic plans • Forecasting
● A project is similar to a program, but generally smaller – Making assumptions about what will happen in the
 Operational Goals and Plans in scope and complexity future.
• Operational Goals • One-time activities that have clear beginning – Qualitative forecasting uses expert opinions.
- Specific, measurable results and end points. – Quantitative forecasting uses mathematical and
- Expected from departments, work groups, and • Project management and project schedules. statistical analysis.
individuals – All forecasts rely on human judgment.
• Operational Plans  What types of plans do managers use? – Planning involves deciding on how to deal with the
- Organization’s lower levels that specify action steps ● Policies and procedures implications of a forecast.
toward achieving operational goals – Standing plans
- Tool for daily and weekly operations • Policies and procedures that are • Contingency planning
- Schedules are an important component designed for repeated use. – Identifying alternative courses of action that can be
– Policy implemented to meet the needs of changing
 What types of plans do managers use? • Broad/ general guidelines for circumstances.
• Operational plans making decisions and taking action in specific – Contingency plans anticipate changing conditions.
— define what needs to be done in specific circumstances. – Contingency plans contain trigger points.
areas to implement strategic plans. － Rules describe how a specific action is to be
• Production plans performed • Scenario planning
• Financial plans － Procedures define a precise series of steps – A long-term version of contingency planning.
• Facilities plans to be used in achieving a specific job – Identifying alternative future scenarios.
• Marketing plans – Plans made for each future scenario.
• Human resource plans – Increases organization’s flexibility and preparation for
future shocks
 GROUP REPORTING
BUREAUCRATIC MANAGEMENT SYSTEM
Bureaucracy & Max Weber (SORONIO)
 BUREAUCRATIC MANAGEMENT
• is a management technique which uses a system of
rules and procedures to organize and control the work
of an organization
 MAX WEBER BUREAUCRACY THEORY
• Max Weber (1864-1920), a German sociologist;
described this theory to operate an organization in an
effective way which is known as the Bureaucratic
management approach or Weberian bureaucracy.
• According to Max Weber, the Bureaucratic
management approach emphasized the necessity of
organizations to operate in a rational way instead of
following the “ arbitrary whims” or irrational emotions
and intentions of owners and managers.
 THIS THEORY FOCUSES ON THE FOLLOWING TWO
PRIMARY CRITERIA:
• developing a hierarchical system in the organization;
• defining clear procedures, methods, rules, and
regulations to carry out business operations and
transactions
 TRAITS OF BUREAUCRATIC MANAGEMENT
1. Process-Oriented Approach
2. Focuses On Organizational Structures and Processes
as Opposed to Individual
3. Ambiguous Definition
4. Too Rigid and Inflexible to Nature
 6 PRINCIPLES OF BUREAUCRACIES IDENTIFIED BY
WEBER
• formal selection rules
• efficient and uniform requirements
• impersonal environment
• task specialization (division of labor)
• hierarchical management structure
• achievement-based advancement
 THREE KINDS OF POWER IN THE ORGANIZATION
• TRADITIONAL
- in traditional authority, the workers (considered as
servants) are dependent upon the leader (lord) working
as their servants and following the stated rules and
regulations blindly.
• CHARISMATIC
- under charismatic power, due to the extraordinary
personality of the managers,
- the workers are deeply motivated to perform their
best on the task allotted to them. however,
- this charisma may fade away with the manager’s lay
off, resignation or demise
• LEGAL-RATIONAL
- in legal-rational power, the workers either need to
abide by the legal rules or the naturally applicable laws.
- in short, all the employee need to follow a consistent
set of principles.
 ADVANTAGES OF BUREAUCRACY
• specialization or expertise: in bureaucracy
management, the work is divided among the employees
according to their skill, capabilities and expertise, which
results in job specialization in the organization
• skill-based recruitment: the employees are recruited
by matching their skills and experience with that
required for the vacant job position to ensure that the
right person is placed at the right job
• predictability: when there is a systematic hierarchy
and defined rules and methods of performing the
complicated tasks in the organization, actions in similar
situations become somewhat predictable for the
management.
• equality: the management remains unbiased towards
the employees and ensures a fair judgement at the time
of any issue or problem in the organization.
• structure: a systematic organizational structure can be
developed through bureaucracy where the rules,
regulations, methods and procedures are predefined. •
systematic record keeping: this approach focuses on
systematically recording all the business transactions
and operations in documents to be used by the other
employees in future.
• rationality: the recording of operations brings
rationality, i.e., framing the laws, rules, regulations and
procedures for future, based on the experience
 DISADVANTAGES OF BUREAUCRACY
• one way communication: the bureaucracy theory
emphasizes on the passing of information, i.e., tasks,
orders, rules and regulations, from the top-level
management to the bottom level; however, feedback
concerning the operational issues and other suggestions
are not taken from the employees.
• the exploitation of power: in a bureaucracy,
managers have a higher authority which can be misused
by them to meet their interest or to dominate their
subordinates
• wastage of time, efforts and money: it involves the
recording of all the business transactions and
operations to create documents which require a lot of
time, money and efforts of the personnel.
• delay in business decision-making:
- the top-level management keeps the
decision-making authority with itself.
Therefore,
- the lower-level managers have to rely upon
the top-level managers, even in the case of any
emergency or situations demanding immediate
action.
• hinders innovation and creativity: the supervisor
controls every activity of the employees, which
ultimately restrict the subordinates to apply creativity
and innovation to their work.
• inflexible and rigid methods: the bureaucracy theory
does not entertain any change or modification in the
management system, which makes it quite rigid
SCIENTIFIC MANAGEMENT
Frederick Taylor
Frank & Lillian Gilbreth (ALLADO)
 SCIENTIFIC MANAGEMENT
- The art of knowing precisely what has to be done and
how. Under this strategy, scientific methods are
employed to address a variety of industrial issues as
well as to attract, select, and train people. It was first
developed by Frederick W. Taylor which sometimes
referred to as Taylorism.
 IMPORTANCE
• It assists business in effectively allocating their
resources, enabling them to maximize their profits.
• It permits quality management, which further aids
business in strengthening their bonds with their
workforce.
• Companies can ensure an increase in productivity by
using scientific methods to guide employees toward
desired objectives.
 Frederick Winslow Taylor (1856 - 1915)
• born in Philadelphia, Pennsylvania, United States
• American inventor and mechanical engineer who is
known as the father of scientific management.
• His system of industrial management, known as
Taylorism, greatly influenced the development of
industrial engineering and production management
throughout the world.
 Key Concept of Taylorism
• He proposed that by optimizing and simplifying jobs,
productivity would increase.
• Taylor also highlighted the idea that workers and
managers needed to cooperate with one another.
 Time and Motion Studies
• To determine the best way to do a job, he broke each
activity down into very small motions and timed each
motion with a stopwatch.
• In one, he experimented with shovel design until he
had a design that would allow workers to shovel for
several hours straight. With bricklayers, he
experimented with the various motions required and
developed an efficient way to lay bricks.
 STANDARDIZATION
• Standardize the process, time, equipment, and costs
across all processes.
 INCENTIVE SYSTEM
• Taylor believed that all workers were motivated by
money, so he promoted the idea of “a fair day’s pay for
a fair day’s work.”
• Employees who adapted to efficient techniques were
rewarded as a result of higher productivity. Employees
who were unable or unwilling to adapt were punished.
 4 Principles of Scientific Management
1. Select method based on science, not “rule of thumb.”
2. Assign workers jobs based on their amplitudes.
3. Monitor worker performance.
4. Properly divide the workload between managers and
workers.
 Criticism of Taylorism training videos to instruct employees in working • CONTRASTS
• The concept is too controlling and dehumanizing. productively. Taylor Gilbreth  The Relevance of Scientific Management to the
• Standardization can lead to a loss of creativity and • Frank and Lilian Gilbreth developed the concept of •More focused on •More focused on process Audience’s Future Careers
innovation and cause a decrease inequality. “therbligs”, 18 basic units of motion named by reversing management. analysis • Emphasis on Efficiency
• It can make workers feel like they are just doing what their family name, to examine essential motions •Manager as expert in •Involving workers in • Importance of Data-Driven Decision-making
are told. The will no longer feel like they are just required for business activities, such as searching for an work process. process development • Division of Labor
contributing to the company or themselves. object, grabbing an object, and assembling and •Potential to dehumanize •Concerned with physical • Standardization
• It does not consider the individual’s needs. disassembling two pieces. workers aspects of work • Adaptability
• Taylorism has also been accused of creating a culture •No equivalent concept to •Developed the concept
of fear among workers. Workers feared losing their jobs  Therbligs are used in the following: “therbligs” of “therbligs”  CONCLUSION
if they failed to meet targets. • In studying the activities of two or more persons on a •Focused on •Focused on worker well- • Scientific management is a management theory that
• Many critics argue that the work carried out by group work. efficiency/productivity being/job satisfaction aims to improve efficiency and productivity by analyzing
employees should be seen as part of the human • In studying the relationship of the activities of the and optimizing work processes. It was developed during
experience rather than simply as economic process. operators and the machine as a means of timing  Organizations that have Implemented Scientific the late 19th and early 20th centuries and its principles
• Teamwork is another area where pure Taylorism is in operations. Management Theory are still relevant in modern management practices
opposition to current practice. • Establishing standard procedure for the company. • PNR (Philippine National Railways today.
• Where Taylorism separates manual from mental work, • In obtaining motion time data for time standards. • San Miguel Corporation • Frederick Taylor, the “faster of scientific
modern productivity enhancement practices seek to • Acts as a permanent record of the method and time of • Jollibee management,” developed the time and into motion
incorporate worker’s ideas, experience and knowledge activities of the operator and the machine. • Philippine Airlines study, which involves breaking down work processes
into best practice. • PLDT smaller, more manageable parts and identifying the
most efficient way to complete each task.
 Frank & Lilian Gilbreth  COMTEMPORARY RELEVANCE • Frank and Lilian Gilbreth, a husband-and-wife team of
• Frank Gilbreth started as a bricklayer’s apprentice • Criticisms and Adaptations of Scientific Management industrial engineers, developed the method of motion
after graduating high school in 1885. He advanced in Modern Times study, which involves breaking down work processes
quickly before leaving to start his own company. Lillian • The Relevance of Scientific Management to the into individual motions and optimizing each motion for
Moller earned a master’s degree in literature from Audience's Future Careers efficiency.
Berkeley in 1902 and met Frank soon after leaving. They
married in 1904 and had 12 children. They co-founded  The Continued Influence of Scientific Management
Gilbreth, Inc., a management consulting firm. on Modern Organization
 Gilbreth Key Contributions to Scientific  Criticism of Gilbreths Approach • Standardization ADMINISTRATIVE MANAGEMENT
Management • Overemphasis on efficiency • Performance Matrix Henry Fayol’S
• motion study • Lack of worker involvement • Time & Motion Studies 14 Principles of Management (TAREPE)
• worker efficiency • Limited applicability • Efficiency & Productivity
• the development of the Therblig system • Disregard for individual differences • Division of Labor  WHAT IS ADMINISTRATION?
• Narrow view of productivity • Administration, also referred to as business
 THE SCIENTIFIC MANAGEMENT THEORY OF FRANK  Criticisms on Scientific Management in Modern administration, is the management and application of
& LILIAN GILBRETH  COMPARE & CONTRAST Times the processes an office, business, or organisation. It
• Frank and Lilian Gilbreth emphasized workplace • COMPARISON • Dehumanization involves the efficient and effective organisation of
regulation and consistency, championing a philosophy - Both Taylor and the Gilbreths sought to increase • Lack of Flexibility people, information, and other resources to achieve
of efficiency that emphasized identifying the one productivity in the workplace through scientific analysis • Limited Focus on Creativity & Innovation organisational objectives. Information is key to business
optimal way to complete each task and reproducing and efficiency improvements. • Overreliance in Quantitative Data operations, and people are the resources who make use
that technique throughout the manufacturing process. - They both believed that there was one best way to of information to add value to an organisation. This
• Reduce the number of motion in a task. perform each task, and that this could be discovered  Adaptation of Scientific Management in Modern means that companies will struggle without some type
through careful analysis of work processes. Times of administration management
 THERBLIG’S SYSTEM - Both Taylor and the Gilbreths used time and motion • Empowering Workers
• The Gilbreths used films to analyze worker activity, studies to identify the most efficient ways to • Promotion, Collaboration, & Teamwork
breaking tasks into elements and recording completion performing tasks, and they both saw standardization as • Fostering a Positive Organizational Structure
time to predict efficient work-flows, and also creating key component of improving productivity. • Incorporating Qualitative Data
 WHAT IS ADMINISTRATIVE MANAGEMENT?
• The management of administration has become an
important function for every successful organisation
and plays an essential role in ensuring that businesses
run smoothly.
• Administrative Management is the process of
managing information through people. This usually
involves performing the storage and distribution of
information to those within an organisation. A large
number of roles within business require some element
of administrative management. Anyone involved in the
planning, coordinating, directing, or controlling aspects
of a business can be considered an Administrative
Manager.
 WHAT DOES AN ADMINISTRATIVE MANAGER DO?
• Administrative managers oversee the support
operations of an organisation. They ensure that there is
effectuive information flow and that resources are
employed effciently throughout a business.
• Strong administrative managers are organised and
detail-orientated with good analytical skills to run day-
to-day operations. They value the point-of-view of
those who are expected to operate often complex
systems. With the speed of change in business it is
important for administrative managers to stay up to
date on developments in the business and office
environment.
• Administrative managers generally work with a large
array of people and may be leading teams where
effective people management comes into play. A
professional in this position may provide support to an
entire company or, in organisations with multiple
administrative managers, each one may be responsible
for a particular division or department of the
organisation. Daily support can involve working with
entry-level employees to senior management, as well as
liasing directly with clients and suppliers.
 WHAT DOES AN ADMINISTRATIVE MANAGER DO?
• An administrative manager can also add value to an
organisation by challenging the effectiveness of
established procedures. It is an important position for
identifying outdated practices and developing continual
improvement processes for the organisation.
Depending on the organisation, administrative
managers may be involved in a variety of
responsibilities such as:
• Business planning
• Project management
• Finance
• Developing budgets
• Performing cost reduction research
• Handling accounts receivable/payable
• Human Resources
• Recruiting and training Employees
• Processing payroll
• Reporting on employee performance
• Office and facilities management
• Clerical tasks
• Writing contracts
• Using database systems
If you are looking for an administrative role, or
looking to progress into your next role, IAM
membership can help you to build and demonstrate
your skillset.
 HENRI FAYOL
- “father of modern management theory”
- introduced a general theory that can be applied to all
levels of management and every department.
- July 29, 1841 - November 19, 1925.
 HENRI FAYOL'S 14 PRINCIPLES OF MANAGEMENT
1. Division of Work - Henri believed that segregating
work in the workforce amongst the worker will enhance
the quality of the product. Similarly, he also concluded
that the division of work improves the productivity,
efficiency, accuracy and speed of the workers. This
principle is appropriate for both the managerial as well
as a technical work level.
2. Authority and Responsibility - These are the two key
aspects of management. Authority facilitates the
management to work efficiently, and responsibility
makes them responsible for the work done under their
guidance or leadership.
3. Discipline - Without discipline, nothing can be
accomplished. It is the core value for any project or any
management. Good performance and sensible
interrelation make the management job easy and
comprehensive. Employees good behaviour also helps
them smoothly build and progress in their professional
careers.
4. Unity of Command - This means an employee should
have only one boss and follow his command. If an
employee has to follow more than one boss, there
begins a conflict of interest and can create confusion.
5. Unity of Direction - Whoever is engaged in the same
activity should have a unified goal. This means all the
person working in a company should have one goal and
motive which will make the work easier and achieve the
set goal easily.
6. Subordination of Individual Interest - This indicates a
company should work unitedly towards the interest of a
company rather than personal interest. Be subordinate
to the purposes of an organization. This refers to the
whole chain of command in a company.
7. Remuneration - This plays an important role in
motivating the workers of a company. Remuneration
can be monetary or non-monetary. However, it should
be according to an individual’s efforts they have made.
8. Centralization - In any company, the management or
any authority responsible for the decision-making
process should be neutral. However, this depends on
the size of an organization. Henri Fayol stressed on the
point that there should be a balance between the
hierarchy and division of power.
9. Scalar Chain - Fayol on this principle highlights that
the hierarchy steps should be from the top to the
lowest. This is necessary so that every employee knows
their immediate senior also they should be able to
contact any, if needed.
10. Order - A company should maintain a well-defined
work order to have a favourable work culture. The
positive atmosphere in the workplace will boost more
positive productivity.
11. Equity - All employees should be treated equally and
respectfully. It’s the responsibility of a manager that no
employees face discrimination.
12. Stability - An employee delivers the best if they feel
secure in their job. It is the duty of the management to
offer job security to their employees.
13. Initiative - The management should support and
encourage the employees to take initiatives in an
organization. It will help them to increase their interest
and make then worth.
14. Esprit de Corps - It is the responsibility of the
management to motivate their employees and be
supportive of each other regularly. Developing trust and
mutual understanding will lead to a positive outcome
and work environment.
This 14 principles of management are used to
manage an organization and are beneficial for
prediction, planning, decision-making, organization
and process management, control and coordination.
BEHAVIORAL/HUMAN RELATIONS MANAGEMENT
Hawthorne Studies/Elton Mayo
Cooperation & Acceptance/Chester Bernard
Mary Parker Follett (EUGENIO)
 Human Relations Management Theory Brief
History
• A premise of organizational psychology from the early
twentieth century.
• Originated between 1924 and 1932.
• These studies were started by scholars from the
Massachusetts Institute of Technology (MIT).
Four "Actors" in Human Relations theory
1. The employee
2. Groups of employees
3. Supervisors and managers
4. The organization
 HAWTHORNE STUDIES BY ELTON MAYO
• Born: December 26, 1880, Adelaide, Australia
• Died: September 7, 1949, Guildford, United Kingdom
• Australian-born psychologist
• The Hawthorne studies are credited with focusing
managerial strategy on the socio-psychological aspects
of human behavior in organizations.
• There were a number of other experiments conducted
in the Hawthorne studies, including one in which two
women were chosen as test subjects and were then
asked to choose four other workers to join the test
group.


The importance of group working cannot be
over-stressed. It is the group that determines
productivity, not pay and not processes. For example, if
someone is working too fast they will be ostracized
from the group. Likewise, if someone is working too
slow the same thing will happen.
Mayo created this matrix to show how
productivity changed in different situations.
There are four positions in the matrix:
1. Groups with low cohesiveness and low norms
2. Groups with high cohesiveness and low norms
3. Groups with high norms but low cohesiveness
4. Groups with high norms and high cohesiveness
 COOPERATION AND ACCEPTANCE
• Chester Irving Barnard (1886-1961)
- Born: November 7, 1886 Malden Massachusetts
- Died: June 7, 1961 (aged 74) New York City New York
- Subjects Of Study: Business, Organization, Executive,
Management
- He defined the organization as "that kind of
cooperation among men that is conscious, deliberate,
and purposeful". Organizations are essentially
cooperative systems, integrating the contributions of
individual participants
- The effectiveness of an organization, according to
Barnard, depends on the ability of the organization to
satisfy the needs of the individuals in the organization
and provide them with opportunities for cooperation.
 Acceptance Theory of Authority- Bernard's view of
authority and was also revolutionary and is related
to leadership theory
- Executives are responsible to establish and maintain a
system of communication, secure services from other
members, and formalize organizational purposes and
objectives.
- In Barnard's view (1940), an organization includes
suppliers, customers, and other "external" forces that
influence it, which is an open systems approach.
- Barnard argued that employees need compatibility to
work well together, and that requires staff compatibility.
This fitness includes education, race, gender, age, and
other factors.
- Barnard argues that he needs three elements to build
a formal organization; willingness to work together,
common goals and communication.
 MARRY PARKER FOLLET
- Profession:
° writer
° worker
° political
° theorist
° organizational consultant
- woman who invented management.
- influenced of modern theory
- she advocated a "pull" rather than push" approach to
employee motivation, differentiated between "power
over" and "power with, "and postulated insightful ideas
on negotiation, conflict resolution and power sharing
- which helped shape modern management theory
- Warren Bennis quoted :
as saying of her, "just about everything written
today about leadership and organizations
comes from mary parker follett's writings and
lectures.”
 MARRY PARKER FOLLET MANAGEMENT THEORY
1. CONFLICT RESOLUTION THROUGH INTEGRATION
(i.e., identifying and meeting each party's
underlying and often compatible need, as
opposed to attempting to meet the frequently-
incompatible expressed disire of each) often
results in a win-win situation.
2. IN MARY PARKER FOLLETT LEADERSHIP THEORY,
genuine power is not "coercive" ("power over
") but coative" (" power with").
3. TRUE LEADERS, ACCORDING TO FOLLETT'S THEORY, • Very different from previous two
"create group power, rather than expressing • More of recognition that business is constantly
personal power. changes.
 MARRY PARKER FOLLET CONTRIBUTION  What is a Contingency?
- A contingency is an event that might happen.
- It's not certain that it will happen, but there is a
possibility that might.
- Good managers need to consider contingencies when
making plans.
- (Fiedler, 1964). There is no one best way of organizing
/ leading and that an organizational / leadership style
that is effective in some situations may not be
successful in others.
 WILLIAM RICHARD SCOTT
- "The best way to organize depends on the nature of
CONTIGENCY MANAGEMENT (GABALES)
the environment to which the organization must relate".
- The work of other researchers including Paul Lawrence,
 Contingency Management
Jay Lorsch, and James D. Thompson complements this
- is a management approach based on the belief that if
statement. They are more interested in the impact of
you want to operate your business effectively in the
contingency factor on organizational structure. Their
long run, you must be fully prepared for the emergency
structural contingency theory was the dominant
events or disruptions.
paradigm of organizational structural theories for most
of the 1970s.
 KEY COMPONENTS
• business continuity planning
 Contingency Management Approach
• disaster-recovery programs
- There is no single good way of managing a business.
- Instead, a manager must be ready to change, to fit in
 The Contingency Approach
with what's best with the environment.
• Third style of Management Theory
- The organisational structure and the management
- Management consists of planning, prioritizing, and
style should depend on the type tasks that are done in
organizing work efforts to accomplish objectives within
the business.
business organization.
- Wide range of external and internal factors must be
- A management style is the particular way managers go
considered and the focuses should be on the action that
about accomplishing these objectives. It encompasses
best fits the given situation
the way they make decisions, how they plan and
organize work, and how they exercise authority
 Contingency Planning
• After Classical and Behavioral
• Contingency Planning
- Management has been as old as the human beings and
- Requires the creation of plans and procedures and the
with the evolvement of humans management has also
identification and implementation of technical
evolved.
measures that will enable the recovery of business
- The history of management and its theories can be
processes, IT systems and data following a business
traced back to thousands of years. Also, Shafritz makes
disruption.
an interesting observation about the contribution of
William Shakespeare to the management theories as
most of his plays deals with the issues like personnel
management and organizational behavior.
 Factors that influence contingency planning  EFFECTS ON MANAGER
• PROBABILITY - The probability that an event/issue will - As a result, your overall ability to correct problems and  TWO PILLARS OF QMS (QUALITY MANAGEMENT  BENEFITS OF QMS
occur is a factor that helps in prioritizing the to become more effective as a manager will increase. SYSTEM)
contingency planning process. - Contingency theory is designed to provide the • QUALITY CONTROL
• IMPACT - The impact an event or issue can have on manager with the capabilities to examine numerous • QUALITY ASSURANCE
business operations is a major factor influencing possible solutions to a problem
contingency planning.  THE DIFFERENT METHODS OF MANAGING QMS
• ORDER - Establishing Order can help to ensure the • Different types of quality management systems, each
contingency plan isn't missing important details. Order with its own set of advantages, disadvantages, and
starts with an estimate of how long it take to get the QUALITY MANAGEMENT SYSTEM abilities. The following are the most commonly used.
business back to how it normally functions after Ed Demming (ABI-ABI) • Standardized Systems:
triggering event occurs. ISO 9000/9001,
• RISK MITIGATION - Efforts influence contingency  QUALITY ISO 13485,
planning by reducing the chance that an event or issue - Quality is the degree to which an object or entity (e.g., ISO 14000/14001,
will occur and by reducing negative effects if the event process, product, or service) satisfies a specified set of ISO 14971,
or issue does takes place. attributes or requirements. ISO 17025, SYSTEMS MANAGEMENT (SIMBAJON)
ISO 22000,
 Why Contingency Plan? - Quality in Products, HACCP 
- To enhance the quality of humanitarian respones! • Customers Systems Management
- From TIME, RELATIONSHIPS, and EFFECTIVENESS. • What they expect  ELEMENT OF QMS • the way of conducting and controlling the system
offering, resources and activities.
 Time - Quality became increasingly important during World • Systems management refers to the centralized
- Deals with anticipated problems before onset of a War II, management of an organization’s IT (information
crisis. • when bullets made in one state had to work with rifles technology).
- Put in place measures that enhance preparedness. made in another
• armed forces initially inspected virtually every unit of  The most common tasks that form part of a
 Relationship product company management system are:
- Establish relationship with partners. • the military began to use quality techniques of • Anti-manipulation management
- Develop shared understanding of common challenges. sampling for inspection • Hardware inventories
- Clarify roles and responsibilities. • Making sure all systems are free of and protected
- Strengthen coordination mechanisms.  Quality Gurus from viruses and malware
• Dr. W. Edward Deming • Managing security
 Effectiveness - "Quality does not mean achieving perfection.  ESTABLISHING AND IMPLEMENTING A QMS • Managing storage
- Identify constraints to effective response actions. It means the efficient production of quality that the The QMS design should be influenced by the • Monitoring capacity
- Focus on operational issues. market expects." organization ’ s varying objectives, needs, and products • Monitoring network capacity and utilization
• Dr. Joseph M. Juran and services provided. This structure is based largely on • Monitoring users’ activity
 EFFECTS ON MANAGER - "Fitness for use " the plan-do-check-act (PDCA) cycle and allows for • The design and day-to-day operations of the data
- By applying contingency theory to the study of continuous improvement to both the product and the center
management, you will be able to identify and to solve  What is Quality Management System? QMS. • The integration of third-party cloud services
problems under different situations. • invented by Ken Crosher, a British management The basic steps to implementing a quality
- You will recognize that the successful application of a consultant in 1991. management system are as follows:  Why is Systems Management so Important?
technique in one situation does not guarantee success • defined as a formalized system that documents 1. design • Leaving your company without the potential for
in another. processes, procedures, and responsibilities for achieving 2. build growth and technology adoption.
- Rather, you will be able to examine each situation in quality policies and objectives. 3. deploy • to monitor and protect all your assets and adapt to
terms of how it is affected by the contextual, • helps coordinate and direct an organization’s activities 4. control hyperconnectivity speeds.
organizational, and human dimensions. to meet customer and regulatory requirements and 5. measure • A single second of downtime can affect your business
improve its effectiveness and efficiency on a continuous 6. review and cause a high loss.
basis. 7. improve
 What Elements of IT Can Systems Management something that needs your full attention. There are
Help You With? many options on the market and if you know your
• Application Monitoring organization from head to toe, and your business
• Asset Inventory requirements, you’ll be able to find the right software
• Log Management and Performance Analytics match.
• Network Monitoring and Management
• System Administration • But if you don’t have the time to hire IT specialists and
• IT Security and Compliance purchase expensive software, you have the chance to
• Automation hire an IT Help Desk and give them control of your
• Help and Service Desk Management systems management. The advice and support from
these experts will be invaluable in the long run.
 What are Some Challenges When Implementing
Systems Management?
• Training. Employees need the right training to use
these tools effectively. Deploying and using centralized
systems management require time and effort. This is
related to the size of the business and the existing
expertise of the IT staff.
• Increase cost. Implementing and maintaining an IT
and systems management requires an increased cost.
Some of the best tools on the market are not so cheap,
and the free ones take time to install and learn.
• Interoperability. Many systems management
software is able to integrate and operate with different
hardware or software vendors. Unfortunately, all of
them have different data interpretations, which makes
the interoperability, challenging.

 How to Plan When Getting a Centralized Systems

Management?
Must know the business criteria before getting a
systems management tool. They should be able to
answer the following questions:
• What are the current IT resources?
• What is the business size?
• What are the main requirements and limitations?
• What is the company’s budget?

 Summary
• A single second of downtime can affect your business,
cause a high financial loss, and lower productivity of the
employees. A Systems Management tool or software
suite can help your IT environment to stay Online and
run smooth. It is the most important element of an IT-
based organization and your success!

• But finding the right Systems Management for your

business should not be your second priority, but