The History and Evaluation

of Management
 History and Evaluation of Management
 Organizational Theories
 Approaches to management
The History of Management
▪ It took more than 100,000 workers some 20 years to construct a single
pyramid.
▪ City of Venice.
▪ The Venetians used warehouse and inventory systems to keep track of
materials,
▪ Human resource management functions to manage the labor force.
▪ An accounting system to keep track of revenues and costs.
The History of Management
▪ In 1776, Adam Smith published The Wealth of Nations
▪ Division of labor (or job specialization)—that is, breaking down jobs into
narrow and repetitive tasks.
▪ Specialized tasks performed by members of a hospital
surgery team.
▪ Positions played by players on a football team.
The History of Management
Starting in the late eighteenth century when machine power was substituted for human power, a
point in history known as the industrial revolution, it became more economical to manufacture
goods in factories rather than at home. MANAGERS needed to forecast demands.

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Classical Approach of management

▪ Theory of Scientific Management.

▪ General Administrative Theory.

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Theory of Scientific Management.

▪ Develop a science for each element of an individual’s work to replace the old
rule-o-thumb method.
▪ Scientifically select and then train, teach, and develop the worker.
▪ Heartily cooperate with the workers so as to ensure that all work is done in
accordance with the principles of the science that has been developed.
▪ Divide work ad responsibility almost equally between management and workers.
Management does all work for which it is better suited than the workers.

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Frederick Winslow Taylor

▪ Virtually no work standards existed.

▪ No match for the abilities of workers and their jobs.
▪ Putting right workers on the job
▪ Tell every worker to follow instruction.
▪ By applying specific procedures, Taylor increased the productivity by 200%.

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Frank and Lillian Gilbreth

▪ Use of proper tools and Equipment.

▪ They also invented a machine called micro-monometer to record workers
hand and body motion and the amount of time they spent on each motion.

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How managers use scientific management

Hire the best-qualified workers for a job, or design incentive systems based on
output.

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General Administrative Theory

Fayol’s attention was directed at the activities of all managers. He was a

managing director of a large French coal-mining firm.

Division of Work. Specialization increases output by making employees more

efficient.
Authority. Manager must be able to give orders, and authority gives this right.
Discipline. Employees must obey and respect the rules that govern the
organization.
Unity of Command. Every employee should receive orders from only one
superior.
Esprit de Corps. Promoting team spirit will build harmony and unity within the
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organization
General Administrative Theory

Unity of Direction. The organization should have a single plan of action to guide
managers and workers.
Subordination of individual interests to the general interest. The interests of
an one employee or group of employees should not take precedence over the
interest of the organizations as a whole.
Remunerations. Workers must be pad a fair wage for their services.
Centralization. This term refers to the degree to which subordinates are
involved in decision making.
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General Administrative Theory

Scalar Chain. Thie line of authority from top management to the lowest ranks is
the scalar chain.
Order. People and materials should be in the right place at the right time.
Equity. Managers should be kind and fair to their subordinates.
Stability of tenure of personnel. Management should provide order personnel
planning and ensure that replacement are available to fill vacancies.
Initiative. Employee who are allowed to originate and carry out plans will exert
high level of effort.
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Weber’s Concept of Bureaucracy

Weber introduces a concept of bureaucracy.

Bureaucracy — a form of organization characterized by division of labor, a
clearly defined hierarchy, detailed rules and regulations, and impersonal
relationships.
Weber's ideas are less practical then taylor’s.

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Characteristics of Weber’s Bureaucracy

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Weber’s Bureaucracy
Many managers feel that a bureaucratic structure hinders individual employees’
creativity and limits an organization’s ability to respond quickly to an increasingly
dynamic environment.

However, even in flexible organizations of creative professionals—such as

Microsoft, Samsung, General Electric, or Cisco Systems—some bureaucratic
mechanisms are necessary to ensure thatresources are used efficiently and
effectively.

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Behavioural Approach
The field of study that researches the actions (behaviour) of people at work is called
organizational behaviour (OB).

What managers to today?

▪ Managing people ▪ Building Trust

▪ Motivating ▪ Working with a team
▪ Leading ▪ Managing conflict

This all has come out from organizational research

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Behavioural Approach

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Quantitative Approach
▪ Use of quantitative techniques to improve decision making. This approach also
is known as management science.

▪ The quantitative approach evolved from mathematical and statistical solutions

developed for military problems during World War II.
▪ It involves applying statistics, optimization models, information models,
computer simulations, and other quantitative techniques to management
activities.

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Total Quality Management
Total quality management, or TQM, is a management philosophy devoted to
continual improvement and responding to customer needs and expectations.
The term customer includes anyone who interacts with the organization’s product
or services internally or externally.

Continual improvement isn’t possible without accurate measurements,

which require statistical techniques that measure every critical variable in the
organization’s work processes. These measurements are compared against
standards to identify and correct problems. Japan TQM in automobile industry.

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What is Quality Management
Increased focus on the customer. The customer includes outsiders who buy the
organization’s products or services and internal customers who interact with and
serve other in the organization.
Concern for continual improvement. Quality management is a commitment to
never being satisfied. “Very Good” is not good enough. Quality can always be
improved.
Improvement in the quality of everything the organizational does. This
relates to the final product, how the organization handles deliveries, how rapidly
it responds to complaints, how politely th phones are answered, and the like,

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What is Quality Management
Accurate Measurement. Quality Management uses statistical techniques to
measure every critical variable in the organization’s operations. These are
compared against standards to identify problems, trace them to their roots, and
eliminate their cause.
Empowerment of Employees. Quality management involves the people on the
line in the improvement process. Teams are widely used in the quality
management programs as empowerment vehicles for finding and solving
problems
Process focused. Quality management focuses on the work processes as the
quality of goods and services is continually improved.
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Contemporary Approaches
A system is a set of interrelated and interdependent parts arranged in a manner
that produces a unified whole. The two basic types of systems are closed and
open. Closed systems are not influenced by and do not interact with their
environment. In contrast, open systems are influenced by and do interact with
their environment.

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Contemporary Approaches
Researchers envisioned an organization as being made up of “interdependent
factors, including individuals, groups, attitudes, motives, formal structure,
interactions, goals, status, and authority.

Relation between production and marketing department.

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Organizations as Open System

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 Contingency Approach
▪ The contingency approach (sometimes called the situational approach) says that
organizations are different, face different situations (contingencies), and require
different ways of managing.

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