PRINCIPLES OF MANAGEMENT

Evolution of Management
 MANAGEMENT
• The attainment of organizational goals in
an effective and efficient manner through
• Four functions
– planning,
– organizing,
– leading, and
– controlling organizational resources.

Managers use a multitude of skills to

perform functions
MANAGEMENT
Managers use a multitude
of skills to perform
functions
EFFECTIVE AND EFFICIENT
HOW DO YOU LEARN TO
MANAGE?
TWENTY-FIRST CENTURY
MANAGER
 FIVE APPROACHES

• UNIVERSAL PROCESS
• OPERATIONAL
• BEHAVIORAL
• SYSTEMATIC
• CONTINGENCY
• INFORMATION TECHNOLOGY ERA and
BEYOND
 CONTRIBUTORS TO
MANAGEMENT THEORY
 MANAGEMENT PERSPECTIVE
OVERTIME
Exhibit 2.1, p.44

2000
The Technology-Driven Workplace
1990 2010
The Learning Organization
1980 2010
Total Quality Management
2000
1970
Contingency Views
1950 2000
Systems Theory
2000
1940
Management Science Perspective
1930 1990
Humanistic Perspective
1890 1990
Classical
1940 2010
1870
9
 Classical Perspective: 3000 B.C.
● Rational, scientific approach to
management – make organizations
efficient operating machines
● Scientific Management
● Bureaucratic Organizations
● Administrative Principles

10
WHO IS HE?

FREDERICK TAYLOR,
Father of Scientific
Management
 Scientific Management: Taylor 1856-
1915
General Approach
• Developed standard method for
performing each job.
• Selected workers with appropriate
abilities for each job.
• Trained workers in standard method.
• Supported workers by planning work and
eliminating interruptions.
• Provided wage incentives to workers for
increased output.
12
 SCIENTIFIC MANAGEMENT
Contributions

• Demonstrated the importance of

compensation for performance.

• Initiated the careful study of tasks and

jobs.

• Demonstrated the importance of

personnel and their training.
13
SCIENTIFIC
MANAGEMENT (TAYLOR)
DEVELOPED GANTT
CHART

HENRY GANTT
 ADMINISTRATIVE
PRINCIPLES
??
??
HO
W
DA

HENRI FAYOL
14 PRINCIPLES OF
MANAGEMENT
 Division of labor  Centralization
 Authority  Scalar chain
 Discipline  Order
 Unity of  Equity
command  Stability and
 Unity of direction tenure of staff
 Subordination of  Initiative
individual interest  Esprit de corps
 Remuneration
BUREAUCRACY

MAX WEBER
BUREAUCRATIC Systematic
approach –

MANAGEMENT looked at
organization
as a whole
BEHAVIORAL APPROACH

---- An approach to management that

emphasizes improving management
through an understanding of the
psychological makeup of people.
HAWTHORNE STUDIES

ELTON
MAYO
HAWTHORNE STUDIES

• Started in 1895
• Four experimental & three control groups
• Five different tests
• Test pointed to factors other than illumination
for productivity
• 1st Relay Assembly Test Room experiment, was
controversial, test lasted 6 years
• Interpretation, money not cause of increased
output
• Factor that increased output, Human Relations
22
BEHAVIORAL APPROACH
 BEHAVIORAL APPROACH
MASLOW HIERARCHY OF NEEDS

1)Physiological
2)Security
3)Love and Belongingness
4)Self-Recognition
5)Self-Actualization
 SYSTEMS VIEW of Organizations

Exhibit 2.5
25
CONTINGENCY VIEW of Management

Exhibit 2.6

26
 TOTAL QUALITY MANAGEMENT
(TQM)
• Focuses on managing the total organization to
deliver quality to customers.
• Four significant elements are
– Employee involvement
– Focus on the customer
– Benchmarking
– Continuous improvement

27
INFORMATION TECHNOLOGY ERA

Team-Based Structure

Learning
Organization
Empowered Open
Employees Information

Exhibit 2.7

28
 Types of E-Commerce

Business-to-Consumer B2C
Selling Products and
Services Online

Consumer-to-Consumer C2C
Business-to-Business B2B Electronic Markets
Transactions Between Created by Web-Based
Organizations Intermediaries
Exhibit 2.8
29
THANK YOU FOR LISTENING…..