Management Principles and

Practices
---Ricky W. Griffin, 11/E

Chapter-02
Traditional and Contemporary Issues and
Challenges
Md. Mizanur Rahman
Professor of Marketing
Dhaka University
 Chapter
Chapter Outline
Outline

• Evolution of ‘Management Theory’

o Classical Management Perspective
o Behavioral Management Perspective
o Quantitative Management Perspective
o Integrative Perspective for Managers

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 The
The Importance
Importance of
of Theory
Theory

• ‘Theory’ is a conceptual o Management theories

framework for are grounded in reality
organizing knowledge o Managers develop their
and providing a own theories to ideally
run their organizations
blueprint for action

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 The
The Importance
Importance of
of History
History

• History
– Provides a sense of heritage
– Helps understand the past to predict
the future
– Helps mangers avoid the mistakes of
others and develop management
practices
– Helps manage things better in reality

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 Four
Four Broad
Broad Perspectives
Perspectives of
of Management
Management

oEarly Management
• Classical Management oScientific Management
oAdministrative Management

• Behavioral Management

• Quantitative Management
o System Approach
• Integrative Perspective for Managers o Contingency Theory

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 EARLY MANAGEMENT PERSPECTIVE

Classical
Classical Management
Management Perspective
Perspective

• Robert Owen (1771– • Charles Babbage

1858) (1792–1871)
o British industrialist who o English mathematician who
recognized the focused on how to create
importance of HRs and efficiencies of production
proposed implementation through the division of
of better working labor, management and
conditions through labor cooperation, and
reduced child labor, application of mathematics
meals, and shorter hours to management problems

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 SCIENTIFIC MANAGEMENT

Classical
Classical Management
Management Perspective
Perspective

• Proponents:
• How to improve the
o Frederic Winslow Taylor
performance of (1856-1915)
individual workers
o Frank and L. Gilbreth
• Grew out of the (1868-1924 & 1878-
industrial revolution’s 1972)
labor shortage at the o Henry Lawrence Gantt
beginning of the 20th (1861-1919)
century o Harrington Emerson
(1853-1931)

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 SCIENTIFIC MANAGEMENT

F.
F. W.
W. Taylor
Taylor (1856-1915)
(1856-1915)
American Foreman

o Put the right person on the job with

• Father of Scientific
the correct tools and equipment
Management
o Have a standardized method of
• ‘Principles of Scientific doing the job
Management’ (1911) o Provide an economic incentive to
• Used scientific the worker
methods to define the o Use time studies, standards
“one best way” for a planning, exception rule, and
piece-work pay systems to control
job to be done
and motivate employees

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 SCIENTIFIC MANAGEMENT

F.
F. W.
W. Taylor
Taylor (1856-1915)
(1856-1915)
American Foreman

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 SCIENTIFIC MANAGEMENT

F.
F. W.
W. Taylor
Taylor (1856-1915)
(1856-1915)
American Foreman

• Criticisms
o Undue pressure on employees
o Exploitation of labor by management for more
productivity and profits

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 SCIENTIFIC MANAGEMENT

Other
Other Scientific
Scientific Management
Management Pioneers
Pioneers

Frank (1868-1924)
o Known for ‘time and motion
study’ Lillian Gilbreth (1878-
o Reduced the number of
1972)
movements in bricklaying o Known for ‘fatigue study’

o Developed the micro- o Focused on the human

chronometer to time worker aspects of work and the
motions and optimize work understanding of workers’
performance (time study) personalities and needs
o Resulted in increased
output of 200%

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 SCIENTIFIC MANAGEMENT

Before
Before

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 SCIENTIFIC MANAGEMENT

After
After

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 SCIENTIFIC MANAGEMENT

Other
Other Scientific
Scientific Management
Management Pioneers
Pioneers

Henry L. Gantt (1861- Harrington Emerson

1919) (1853-1931)
̶ Was an early associate of ̶ Advocated job
Fredrick Taylor specialization in both
managerial and operating
̶ Developed other
jobs
techniques, including the
Gantt Chart, to improve
working efficiency through
planning

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 ADMINISTRATIVE MANAGEMENT

Classical
Classical Management
Management Perspective
Perspective

• Proponents
• Focuses on ̶ Henri Fayol (1841–1925)
managing the total ̶ Max Weber (1864–1920)
organization
̶ Lyndall Urwick (1891–
rather than 1983)
individuals
̶ Chester Barnard (1886 –
1961)

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 ADMINISTRATIVE MANAGEMENT

Henry
Henry Fayol
Fayol (1841–1925)
(1841–1925)
French industrialist

• Father of “Modern ̶ Was first to identify the

Management” specific management
functions of planning,
• “General and Industrial organizing, leading, and
Management” controlling

• Management is distinct ̶ Divided industrial activities

from other into six groups: technical,
organizational commercial, financial,
functions security, accounting, and
managerial

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 ADMINISTRATIVE MANAGEMENT

Fayol’s
Fayol’s 14
14 Principles
Principles of
of Management
Management
French industrialist

• Division of work – • Unity of direction – People

Specialization of jobs can engaged in the same kind of
increase output activities must have the same
objectives in a single plan
• Authority –  Managers must
be able to give orders with • Subordination of individual
formal authority; with authority interests to the general interest –
comes responsibility Management must see that the goals
of the firms are always paramount
• Discipline– Respect the
rules and agreements • Remuneration – Workers must be
paid a fair wage for their services
• Unity of command –
Employee must receive • Centralization – Depends on the
instruction only from one condition of the business and the
person quality of its personnel.
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 ADMINISTRATIVE MANAGEMENT

Fayol’s
Fayol’s 14
14 Principles
Principles of
of Management
Management
French industrialist

• Scalar chain – Be aware of • Stability of tenure of

organizational hierarchy--the personnel – Managers should
line of authority from top strive to minimize employee
management to the lowest turnover
ranks
• Initiative – Workers should be
• Order – Workplace facilities given necessary level of
must be clean, tidy, and safe freedom to create and carry
and everything should be in out plans
the right place at the right
• Espirit De Corps: Promoting
time
team spirit will build harmony
• Equity – Managers should and unity within the
be kind, just, and fair to their organization
subordinates
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 ADMINISTRATIVE MANAGEMENT

Max
Max Weber
Weber (1864–1920)
(1864–1920)
German Sociologist

̶ Division of labor (horizontal

• Developed a ‘theory of specialization)
authority’ based on an ̶ Hierarchy of authority (vertical
ideal type of specialization)
organization ̶ Formal selection and
(bureaucracy) promotion
̶ Formal rules and procedures
• An ideal bureaucracy
contains 6 elements ̶ Impersonality (no favoritism)
̶ Career orientation (career
professionals)

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 Weber’s
Weber’s Ideal
Ideal Bureaucracy
Bureaucracy

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 ADMINISTRATIVE MANAGEMENT

Other
Other Administrative
Administrative Management
Management Pioneers
Pioneers

Lyndall Urwick (1891–1983)

̶ Integrated the work of Fayol and other administrative
management theorists
̶ Wrote “The Elements of Business Administration”,
published in 1943

Chester Barnard (1886 –1961)

̶ Wrote “The Functions of the Executive”
̶ Proposed a theory of the acceptance of authority (by
subordinates)

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 The
The Behavioral
Behavioral Management
Management Perspective
Perspective

• Proponents:
• Focused on individual ̶ Hugo Munsterberg (1863–
attitudes and 1916)
behaviors, and group ̶ Mary Parker Follett (1868–
processes 1933)
̶ Elton Mayo (1868–1933)
• Claims truly effective
̶ Abraham Maslow’s
control comes from Hierarchy (1908-1970)
within the individual ̶ Douglas McGregor Theory
worker rather than X & Y (1906-1964)
authoritarian control ̶ Frederick Herzberg (1923-
2000)

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 BEHAVIORAL MANAGEMENT PERSPECTIVE

Hugo
Hugo Munsterberg
Munsterberg (1863–1916)
(1863–1916)
German Psychologist

• Father of “Industrial
Psychology” ̶ Psychological tests for
employee selection
• “Psychology and
̶ Learning theory for
Industrial Efficiency”
employee training
• Proposed application of
̶ Study of human behavior
psychology to industry for employee motivation
and management

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 BEHAVIORAL MANAGEMENT PERSPECTIVE

Mary
Mary Parker
Parker Follett
Follett (1868–1933)
(1868–1933)
American Social Worker
Management Consultant
• Mother of ‘Modern Management’
• Direct contact between employees ̶ Management is the ‘art of
and managers helps organizations getting things done
Principles of coordination

avoid conflict through people’

• Early stage: Coordination should be ̶ Focused on importance of
learned and mastered straight away "coactive" (power with) not
“coercive" (power over)
• Reciprocal relationship: Every
worker is responsible for pulling his/her ̶ Admonished over-
weight and integrating with the rest of managing
(micromanaging)
the organization
employees
• Continuous process: Coordination
must be maintained.
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 BEHAVIORAL MANAGEMENT PERSPECTIVE

Elton
Elton Mayo
Mayo (1868–1933)
(1868–1933)
A psychologist, sociologist
and an organization theorist

• Founder of ‘Human Relations Movement’

̶ Employees are far more

motivated by relational
̶ Stated that varying
factors than by monetary
combinations of group
rewards or environmental
norms and group
factors
cohesiveness play a role
̶ Manager’s concern for in team effectiveness
workers →increased
satisfaction →improved
performance

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 BEHAVIORAL MANAGEMENT PERSPECTIVE

Abraham
Abraham Maslow
Maslow (1908-1970)
(1908-1970)

General Examples Organizational Examples

Self-
Self-fulfillment actualization Challenging Job

Status Esteem Job Title

Friendship Belonging Friends

Stability Safety Retirement Plan

Shelter Physiological Wages

Based on needs satisfaction

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 BEHAVIORAL MANAGEMENT PERSPECTIVE

Abraham
Abraham Maslow
Maslow (1908-1970)
(1908-1970)

̶ Satisfied needs don’t motivate

• Human needs are individuals
arranged in a ̶ The deficiency needs (the first 4
hierarchy of 5 levels needs) are said to motivate
people when they are unmet
• We satisfy each need
in turn, starting with ̶ Managers should create an on-
the first the-job situation that permits
employees to satisfy their
dominant needs

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 BEHAVIORAL MANAGEMENT PERSPECTIVE

Douglas
Douglas McGregor’s
McGregor’s (1906-1964)
(1906-1964)
Theory X and Theory Y proposed managerial beliefs about people and work

Theory X
Employees Employees
• Don’t like work and try to avoid
it
• Are lazy, unmotivated and
irresponsible
• Are self-centered and resist
change
• Managers have to control,
direct, coerce and threaten
employees to get them to work
Theory Y
• Don’t naturally dislike work and don’t
try to avoid it
• Are energetic, ambitious, and
responsible
• Are creative in solving organizational
problems
• Managers don’t have to control as
they are self directed, self-controlled,
and committed to achieving
objectives

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 BEHAVIORAL MANAGEMENT PERSPECTIVE

Frederick
Frederick Herzberg
Herzberg (1923-2000)
(1923-2000)
• The hygiene factors can de-motivate or cause
dissatisfaction if they are not present
• Motivators do motivate or create satisfaction

Hygiene/maintenance Factors Motivators

• Company Policy • Achievement
• Supervision • Recognition
• Relationship with Boss • The Work Itself
• Work Conditions • Responsibility
• Salary • Advancement
• Relationship with Peers • Growth

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 Quantitative
Quantitative Management
Management Perspective
Perspective

• Emerged during WWII to • Focuses on improving

help the Allied forces to managerial decision
solve military logistics and making by applying
control problems
̶ Statistics, optimization
̶ Also called management
models, computer
science or operations
models, and computer
research
simulations
̶ Deals with the application
of mathematical and
statistical methods

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 Integrative
Integrative Perspectives
Perspectives for
for Managers
Managers

• A thorough understanding
of management requires ̶ Systems approach
an appreciation of all the ̶ Contingency approach
perspectives of
management

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 INTEGRATIVE PERSPECTIVE

The
The Organization
Organization as
as aa Open
Open System
System
Recognition of internal dependencies and environmental
influences

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 INTEGRATIVE PERSPECTIVE

The
The Organization
Organization as
as aa Open
Open System
System

• Implications of system approach

̶ Needs coordination of the
organization’s parts
̶ Decisions and actions taken in one
area of the organization will have an
effect in other areas
̶ Organizations are not self-contained
and, therefore, must adapt to
changes

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 INTEGRATIVE PERSPECTIVE

Contingency
Contingency Perspective
Perspective of
of an
an Organization
Organization

• Focuses on situational • 4 contingency

factors variables
̶ No best method in all ̶ Organization size
different situations
̶ Routineness of task
̶ The best method to solve a technology
problem varies according to
̶ Environmental
situation
uncertainty
̶ Every organization is unique
̶ Individual differences

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 INTEGRATIVE PERSPECTIVE

Contingency
Contingency Perspective
Perspective of
of an
an Organization
Organization

• Universal perspective
̶ Attempts to identify the “one best
way” to manage organizations

• Contingency perspective
̶ Suggests that each organization is
unique and solution depends on the
current situation

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 INTEGRATIVE PERSPECTIVE

Contingency
Contingency Perspective
Perspective of
of an
an Organization
Organization

Problem
Problem or
or Situation
Situation

Important
Important
Contingencies
Contingencies

Solution
Solutionor
or Solution
Solutionor
or Solution
Solutionor
or
Action
ActionAA Action
ActionBB Action
ActionCC

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 Contemporary
Contemporary
Management
Management Issues
Issues and
and Challenges
Challenges

• An erratic economy that limits growth

• Management of an increasingly diverse workforce
• Employee privacy
• Technology that promotes telecommuting
• The role of the Internet in business strategy
• Operating and competing in diverse global markets
• Ethics in corporate governance and social responsibility
• Quality as the basis for competition
• The shift toward a service economy
• Labor shortage in high-technology job sectors

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 Key
Key Terms
Terms

• Theory • Quantitative management

• Classical management perspective
perspective • Management science
• Scientific management • Operations management
• Soldiering • System
• Administrative management • Closed system
• Behavioral management • Subsystem
perspective • Synergy
• Theory Y • Entropy
• Human relations movement • Contingency perspective
• Organizational behavior

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 THANK
THANK YOU
YOU

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