approcahes to mangemnet- course advance management
TRANSCRIPT
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Class lectures on Approaches to management
Prof. A. Akkas
A number of experts offered ideas which became the
basis for the development of management as a field of
knowledge.There are many approaches to management.Classical viewpoint. The classical era covered the
period from about 1900 to the mid 1930s.
It is a perspective on management that emphasizes
finding ways to manage work and organization more
efficiently.
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Classical approach It highlights the need for a scientific approach to
management.
Emphasizes the potential importance of pay as a
motivator.
Classical viewpoint is made up of three
approaches-
Scientific management, Administrative management and
Bureaucratic management.
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Scientific management
Scientific management is an approach that
emphasizes the scientific study of work
methods in order to improve worker efficiency.
It concerned with physical efficiency of
individual worker.
Its main objective was improving economic efficiency
especially labor productivity. . It was one of theearliest attempts to apply science to engineering
process and to management.
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F. W. Taylor was the father scientific
management. His main concern was to increase efficiency inproduction.
He writes a book titles principles of Scientificmanagement.
F. W. Taylor observed that workers weresuffering a problem, what he called soldiering.Taylor observed that the problem of productivitywas a matter of ignorance on the part of both
management and workers. Productivity is the answer to both higher wages
and higher profit
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Scientific management
Soldiering is deliberately working less than full capacity.
Workers feared that increasing productivity would cause
them or other workers to lose jobs.
Workers feared that increasing productivity would cause
them or other workers to lose jobs. Faulty wage systems
set up by management encouraged workers to operate at a
slow pace.
Taylor believed that managers could resolve the soldiering
problem by developing a science of management based on
the four principles summarized below:
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S. Management
- Scientifically study each part of a task and develop
the best method for doing 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.
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S. management
- Divide work and responsibility so that
management is responsible for planning
work methods and workers are responsible
for executing the work accordingly.- Taylor developed time and motion study to
find out best way to do the job. To motivate
workers Taylor favored incentive wage plan.
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- Taylor advocated the use of wage incentive plans to
solve the problem of wage system that encouraged
soldiering.
- Taylor was able to define the one best way for doing
each job.
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Lillian writes a book named the psychology of
Management.
She argues that the purpose of of scientific is to helppeople reach their maximum potential by developing their
skills and abilities.
She was the first women to gain prominence as a major
contributor to the development of management as science.
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Administrative management
It is an approach that focuses on principles that can b used
b managers to coordinate the internal activities of
organizations.
Henri fayol and C.I. Barnard were the main contributors to
this school.
A manager must have some skills in order to be effective
and these skills can be taught through training and
education.. He believed that management was a distinct
skill. Management was an activity common to all human
undertakings.
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Fayol wrote a book titles General and Industrial
management.
He identified that there were six types of industrialactivities. These are: technical, commercial,
financial, security, accounting and managerial
Managerial activity. There are five managerial
functions such as planing, organizing,
commanding, coordinating and controlling.
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Fayol also developed 14 principles of
management. These are:
division of work, authority,
discipline,
unity of command, unity of direction,
subordination of individual to general interest.
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remuneration,
centralization,
scalar chain, order,
Equity. Treat people with justice and kindness.
Stability of personnel tenure.
Initiative. Encourage and develop subordinate initiative to the
fullest.
Esprit de corps. Unity is strength.
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Managers must be able to give orders.
Employees must obey rules and regulations of the
organization.
Unity of command. Every employee should
receive orders from only one superior.
Unity of direction. Each group of organizationalactivities that have same objective should be
directed by on manager using one plan.
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C.I Barnard
His classic book named The functions of theExecutive, published in 1938.
His main contribution is Acceptance theory
of authority.
It is a theory that argues that authority doesnot depend as much on persons of authority
who give orders as the on the willingness tocomply who receive orders.
It is employee who decides whether or not toaccept orders and directions from above.
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acceptance theory of authority
A managers authority rests on his or her subordinates
acceptance of his or her right to give orders and to expectsubordinate's compliance with them.
Barnard disagreed with the classical view that authoritytranscends from top to bottomHe said that authority
transcends from bottom to top i.e. it is delegated upwardsAuthority does not depend on commands, but on areciprocal relationship; a communication becomesauthoritative by virtue of its acceptance by a contributor.Thus AUTHORITY DEPENDS ONCOMMUNICATION
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According to acceptance theory of authority, authority arises onlywhen the orders are accepted by the subordinates. Authority flows tomanager through acceptance of his orders by the subordinates.
There will be no authority if the subordinates do not accept his orders.When the subordinates accept the order of the supervisor because ofhis personality, it is called charismatic theory of authority. Asubordinate accepts authority because of the, following reasons:
(a) The subordinate expect some reward by accepting authority.
(b) The subordinate wants to avoid disciplinary actions.
(c) The subordinate believes that authority is legitimate
(d) The subordinates regard the age and experience of the manager.
Acceptance theory of authority is subject to criticism because it isunreal and gives too much emphasis on subordinates.
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Bureaucratic management
Bureaucratic management is an approach thatemphasizes the need for organizations to operate
in a rational manner rather than relying on the
arbitrary whims of owners and managers.
Max Weber is the father of this approach.
He described an ideal types organization that he
called a bureaucracy.
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Bureaucratic management
Characteristics of Weber's bureaucracy:
Specialization of labor. Jobs are broken down into
routine and well defined tasks so that membersknow what is expected of them and can becomeextremely competent at their particular subset oftasks.
Formal rules and procedures. Written rules andprocedures specify the behaviors of desired frommembers facilitate coordination and ensureuniformity.
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Impersonality. Rules and sanctions applied
uniformly regardless of individual personalities.
Well defined hierarchy. Multiple levels ofpositions, with carefully determined reporting
relationships among levels, provide supervision of
lower offices by higher ones.
Career advancement based on merit. Selection and
promotion is based on the qualifications and
performance of members.
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Behavioral viewpoint The people side of organization .
It is a perspective on management that emphasizesthe importance of attempting to understand the
various factors that affect human behavior inorganizations.
Hawthorne studies. A group of studies conducted atthe Hawthorne plant of the Western Electric
company during the late 1920s and early 1930s tofind out the impact of illumination on productivity.
The findings led to develop the human relationsview of management.
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Hawthorne studies
Productivity was improved when lighting was
either increased or decreased.
Mayo found that productivity improvement wasdue to such factors as morale, satisfactory
interrelationships members of the group, group
sentiments, employee oriented management style.
Humans are social, not only economic. Money
was less a factor in determining output
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Human relations movement
More emphasis on human relation and motivation
for improving productivity.
Emphasis on building collaborative andcooperative relationships between supervisors and
workers.
Managers must have social skills.
They must know how to make workers feel more
satisfied with their jobs.Abraham Maslow and
Douglas Mcgregor were the main contributors.
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Behavioral Approach
This approach emphasizes scientific research as
the basis for developing theories about human
behavior in organizations that can be used toestablish practical guidelines for managers.
It draws on findings from a variety of disciplines
such as management, psychology, sociology,
anthropology, and economics.
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Operation approach
Draws together concepts, principles,
techniques and knowledge from other fields
and and managerial approaches. The attempt is to develop science and
theory with practical application.
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Management information
systems It is the field of management that focuses on
designing and implementing computer based
systems for use by management. Such systems turn raw data into information that is
useful to various levels of management.
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Contingency or situational
approach
Managerial practices depend on circumstances or
situations. A contingency theory is a viewpoint that argues
that appropriate managerial action depends on the
particular parameters of the situation.
There is no one best approach to solve a problem.
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Mckinseys 7-S framework The seven Ss are
Strategy. Structure. Organization structure and authority and
responsibility relationship.
Systems
Styles. The way management behaves and collectivelyspends its time to attain organizational goals.
Staff
Shared values. Values shared by the members of
organization.
Skills
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Empirical or case approach
Studies experience through cases.
Identifies successes and failures.
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Management Science
Management science is an approach aimed at
increasing decisions effectiveness through the use
of sophisticated mathematical models andstatistical methods.
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System approach
Organizations are viewed as open systems consists of
many subsystems.
A system is a set of interrelated parts that operate as a
whole in pursuit of common goals. According the system
approach,an organizational system has four components
such as inputs, transformation process, output and
feedback.
Recognizes importance eof studying inter-relatedness ofplanning, organizing, and controlling in an organization as
well as the many subsystems.
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Japanese management
It is an approach that focus on aspects of management in
Japan that may be appropriate for adoption in other
countries.
Japanese management is becoming popular because of the
recent admirable success of Japanese companies.
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Theory Z
Theory Z has been developed by William Ouchi. It adapts the elements of effective Japanese management
systems to U.S. culture.
It is a concept that combines positive aspects of American
and Japanese management into a modified approach aimedat increasing US managerial effectiveness.
The main features of theory Z are: life time employment,
individual responsibility, concern for total person, informal
control system, consensus decision making, slower rates of
promotion.
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Total quality control
TQM is an approach that highlights collectiveresponsibility for product and service quality and
encouraging people to work together to improve
quality.
The aim of TQM is to achieve zero defects. Deming and Juran helped Japanese companies in
TQM efforts.
Japanese companies established Deming prize, anannual award for excellence in quality control.
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A management Theory Jungle
Concluding remarks
Management means many things to many people. Many
writers have contributed to the development of
management thought.
The variety of approaches to management analysis has
resulted in much confusion as to what management is,
what management theory and science is and how
managerial events should be analyzed.
Koontz called this situation the management theory
jungle