Prof.
Pallavi Deshmukh
MBA I Sem
Principles of Management
To understand how management theories
develop
To understand the impact of the
environment to management thinking
To gain insights into new management
approach
Early ideas about management strategy
Sun Tzu (770-476 B.C.), The Art of War
Early ideas about leadership
Nicol Machiavelli (1469-1527), The Prince
Early ideas about the design and
organization of work
Adam Smith, The Wealth of Nations
division of labor
Shang Chang Ru Zhan Chang
The marketplace is a battlefield
Sun Tzu, 4th century BC
New science of
management lies in the the
old art of government
"to be a great pretender
and dissembler."
cunning and intrigue, the
triumph of force over
reason.
"a prince" ought to have no
other aim or thought, nor
select anything else for his
study, than war and its
rules and discipline."
Contingency Approach
Systems Theory
(Comprehensive Analysis of Management)
GENERAL
ENVIRONMENT
SOCIAL
OPERATING
ENVIRONMENT
ECONOMIC
NEW ENTRANTS
INTERNAL
ENVIRONMENT
SUBSTITUTES
POLITICAL
PRODUCTION
TECHNOLOGY
STRUCTURE
INPUTS
SUPPLIER
COMPETITION
TECHNOLOGY
CUSTOMER
LEGAL
The classical approach (ca1890) to
management is a management approach that
emphasizes organizational efficiency to
increase organizational success.
Environment in ca1890
Industrial revolution
Autocratic management was the norm
Science" as a solution to the inefficiencies
and injustices of the period
Idea of interchangeable parts
Scientific Management
Frederick W. Taylor
Frank and Lillian Gilbreth
Henry Gantt
Bureaucratic Management
Max Weber
Administrative Management
Henri Fayol
1.
2.
3.
4.
Scientifically study each part of a task
and develop the best method of
performing the task.
Carefully select workers and train them
to perform the task by using the
scientifically developed method.
Cooperate fully with workers to ensure
that they use the proper method.
Divide work and responsibility so that
management is responsible for
planning work methods using scientific
principles and workers are responsible
for executing the work accordingly.
Specialization
of labor
Formal rules and procedures
Impersonality
Well-defined hierarchy
Career advancement based on merit
1. Division of work
8.
Centralization
2. Authority
9.
Scalar chain
3. Discipline
10. Order
4. Unity of command
11. Equity
5. Unity of direction
12. Stability and
6. Subordination of
individual interest
to the general
interest
tenure
13. Initiative
14. Esprit de corps
7. Remuneration
Planning, Organizing, Commanding, Coordinating, Controlling
The behavioral approach (ca 1910) to
management is a management approach that
emphasizes increasing organizational
success by focusing on human variables
within the organization.
Environment in ca1910
The Newtonian science that supported "the one best way" of
doing things was being strongly challenged by the "new
physics" results of Rutherford and Einstein
In the work place there were strong pressures for shorter
hours and employee stock ownership.
As the effects of the 1929 stock market crash and following
depression were felt, employee unions started to form
The
Hawthorne
Studies
Human Relations
Approach
Employee motivation
Abraham Maslow
Leadership style
Douglas McGregor
The discovery that paying special
attention to employees motivates them
to put greater effort into their jobs.
(from the Hawthorne management studies,
performed from 1924 1932 at Western Electric
Companys plant near Chicago)
Maslows Hierarchy of
Needs
Self-Actualization
Need for Self Esteem
Need for Social Relations
Need for Security
Physical Needs
Leaders and managers who hold Theory X
assumptions believe that employees are
inherently lazy and lack ambition.
A negative perspective on human behavior.
Leaders and managers who hold Theory Y
assumptions believe that most employees do not
dislike work and want to make useful
contributions to the organization.
A positive perspective on human behavior.
The management science approach (ca1940)
is a management approach that emphasizes
the use of the scientific method and
quantitative techniques to increase
organizational success.
Environment in ca1940
Application of OR in solving complex problems in
warfare (WWII)
Significant technological and tactical
breakthroughs
Interest in manufacturing and selling after WWII
The system approach (ca 50s-60s) to
management is a management approach
based on general system theory--the theory
that to understand fully the operation of an
entity, the entity must be viewed as a system.
This requires understanding the
interdependence of its parts.
Environment in ca1950s to 60s
Growing quality consciousness
Total Quality Management
GENERAL
ENVIRONMENT
SOCIAL
OPERATING
ENVIRONMENT
ECONOMIC
NEW ENTRANTS
SUPPLIER
PLANNING, ORGANIZING,
INFLUENCING, CONTROLLING
INPUT PROCESS OUTPUT
SUBSTITUTES
POLITICAL
COMPETITION
TECHNOLOGY
CUSTOMER
LEGAL
The contingency approach (ca 70s) to
Management is a management approach that
Emphasizes that what managers do in
practice depends on a given set of
circumstances--a situation.
Environment in ca1970s
Emergence of new companies Apple
Emergence of new products, IBM PC
Triangular management is a management
approach that emphasizes using information
from the classical, behavioral, and management science schools of thought to manage
the open management system.
M
AN
RM
FO
IN
ECONOMIC
NEW ENTRANTS
EOR
TECHNOLOGY
F
IN
PLANNING, ORGANIZING,
INFLUENCING, CONTROLLING
INPUT PROCESS OUTPUT
SUBSTITUTES
POLITICAL
COMPETITION
D
SE
BA
SUPPLIER
BA
LL
Y
NC
IE
M
CUSTOMER
BEHAVIORALLY BASED INFORMATION
LEGAL
IO
AT
CL
AS
SI
CA
SC
OPERATING
ENVIRONMENT
SOCIAL
EN
SE
D
EM
AT
IO
AG
GENERAL
ENVIRONMENT
Theory Z (ca 80s) suggests that involved workers
are the key to an increase in productivity and it
offers offers ways to manage (collective decision
making, slow evaluation and promotion, and
holistic concern for people) so that they can work
together more effectively.
Environment in ca1980s
Slow American productivity improvement
Rise of Japanese companies
Japanese management may offer solutions to this
problem
Involved workers are the key to an
increase in productivity.
From Theory Z by William Ouchi, 1981
Chaos theory (ca 90s) in management
recognizes that events indeed are rarely
controlled. Blending chaos with order
Environment in ca1990s
Start of Internet age
Highly competitive environment
Emergence of communications technologies
Emergence of new work practices (virtual teams,
network organizations)
Purpose
Clarity
Principles, People, and Concept
of purpose and
shared values
Operate through
network of equals, not
hierarchies
Structure and Practice
From Birth of the Chaordic Age by Hock, D. 1999
Environment in the millenium
Information and electronic age
Information and knowledge is going to be readily
available to us all
Information speed through Internet
The future is going to be dominated by our need to
understand systems.
The learning organization approach to
management is the management approach
based on an organization anticipating
change faster than its counterparts to have
an advantage in the market over its
competitors.
From The Fifth Discipline by Peter Senge, 1990
Managers must create an environment conducive
to learning
Managers encourage the exchange or information
among organization members
Managers promote
systematic problem solving
Experimentation
learning from experiences and past history
learning from experience of others
transferring knowledge rapidly throughout the
organization
From The Fifth Discipline by Peter Senge, 1990
System Thinking
Every organization member understands his or her own
job and how the jobs fit together to provide finals
products to the customer
Shared vision
All organization members have a common view of the
purpose of the organization and a sincere commitment to
accomplish the purpose
Challenging of the mental models
Organization members routinely challenge the the way
business is done and the thought processes people use to
solve organizational problems
From The Fifth Discipline by Peter Senge, 1990
Team learning
Organization members work together, develop solution to
new problems together, and apply the solutions together.
Working as teams rather than than individuals will help
the organization gather collective force to achieve
organizational goals
Personal mastery
All organization members are committed to gaining a
deep and rich understanding of their work
Such an understanding will help organizations to reach
important challenges that confront them
From The Fifth Discipline by Peter Senge, 1990
System thinking
(Systems Approach)
Personal mastery
(Theory Z/Behavioral)
Building a
Learning
Organization
Team Learning
(Theory Z/Behavioral)
Shared Vision
(Chaordic Organization)
Challenging of
Mental models
(Classical/Management
science)
The business process management approach to management
is a method of efficiently aligning an organization with the
wants and needs of clients. It is a holistic management
approach that promotes business effectiveness and efficiency
while striving for innovation, flexibility and integration with
technology. As organizations strive for attainment of their
objectives, BPM attempts to continuously improve processes the process to define, measure and improve your processes
a process optimization' process.
This is actually a slow advance in process management:
Record Management
Workflow - 1970
Business Process Re-engineering (BPR) - 1990
Business Process Management (BPR) - 2000
Is there an Asian Management
Theory??
Business tend to be small scale
Time has no beginning and end
Individualism is less relevant; managerial beliefs
shift towards the autocratic end
Conformity to socially acceptable behaviors is
done through morality (e.g losing face)
Oriental managers rely less on interpersonal
confrontations
Managerial decisions consider effects on othe
rpeople
Control of performance is less formal
Maintaining and developing guanxi (connection
and relationship
*From World Executive Digest by Redding & Martyn, 1984
Values and attitudes affect but do not invalidate
the transfer of American management
concepts Consequently, when we wish to
transfer an effective device from one culture to
another, careful attention should be given to
underlying premises?
Tools of management remain the same.**
Economic and business philosophy are however,
different.**
Combination of general management, functional
management, and communal organization and
management..**
Photo from [Link]
*From World Executive Digest by William Newman, 1984
**From World Executive Digest by Sixto Roxas, 1981
The models and ideal types taught in Westernoriented MBA programs are based on certain
assumptions, many of which are invalid in the
Philippines.
Although organizations here have most of the
structures and formal procedures of Western
business, actual day-to-day business processes and
interactions necessarily proceed within the matrix
of Filipino culture and values.
Thus, the need for the Westerner to go "the extra
mile" to understand what's really going on and
adapt a culturally sensitive style of doing business.
- Clarence Henderson,
Henderson Consulting International
No one Management Theory or Style.
Under the formal organization are:
Informal organization
Battlefield of behavioral styles among managers
and employees
Unknown cultural ambiance among peoples and
systems
From Pinoy Management by Ernesto Franco, 1986
Walang bilib sa sarili (No confidence in
oneself)
Dikdik sa Colonial Mentality (Indoctrinated
with Colonial Mentality)
Masyadong relaks (Overly relaxed)
Ningas-cogon (Not a follow-up people)
Holiday mentality
Lack of managerial and organizational
effectiveness
Lack of self-reliant tenacity
From Pinoy Management by Ernesto Franco, 1986
Kailangan may No. 2 (There is a need for No.2)
Tsismis machine (Grapevine Machine)
Kailangan may Hatchet Man (There is need for a Hatchet Man)
Be an expert on timing
Lumayo sa madalas matalo (Avoid losers)
Gawin mong personal (Make it personal)
NBA Style: One-on-one
Power play. Laban (Fight)
Be situational and contingent
Umarte kang parang intelihente. Iyong laging nag-iisip
Body language ang importante (Body language is important)
Pag sinabing No, dapat No talaga
From Pinoy Management by Ernesto Franco, 1986
Management by Kayod (Realist Manager)
He wants quick action
Hes an autocrat
He is sigurista
He has gut feel
He knows how to use people
Management by Libro (Idealist Manager)
He is a thinker; technocrat; mabusisi; may
sistema
Matigas and ulo
From Pinoy Management by Ernesto Franco, 1986
Management by Lusot (Opportunist
Manager)
He is galawgaw
Walang konsensiya
Mahilig sa lusot (Loves to get by)
Mahilig sa ayusan
Ugnayan-Management (The Hybrid)
Has balance
Contingency management style
He is solid
Marunong pumili (Chooses well)
Pambihira talaga (Exceptionally gifted)
From Pinoy Management by Ernesto Franco, 1986
