management approaches
TRANSCRIPT
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MANAGEMENT
encompasses an array of different functions undertaken to accomplish a task successfully
process of designing and maintaining an environment in which individuals, working to gather in groups, efficiently accomplish selected aims
has many approaches --varying from a problem to problem solving style to the change
each approach has its own limitations and advantages.
about „getting things done‟
MANAGEMENT “Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.”
- F .W. Taylor
“Management is a multipurpose organ that manage a business and manages Managers and manages Workers and work.”
-Peter Drucker
The Value of Studying MANAGEMENT
The universality of management
Good management is needed in all organizations.
The reality of work
Employees either manage or are managed.
Rewards and challenges of being a manager
Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
Successful managers receive significant monetary
rewards for their efforts.
Universal Need for Management
Efficiency and Effectiveness in
Management Managerial Concerns
Efficiency
“Doing things right”
Getting the most output for the least inputs
Effectiveness
“Doing the right things”
Attaining organizational goals
Efficiency and Effectiveness in Management
ENVIRONMENT FACTORS
SOCIAL INFLUENCE
• The aspects of culture that influence norms and values
ECONOMIC INFLUENCE
• The concept to availability, production, and distribution of resources within a society
POLITICAL INFLUENCE
• The impact of political institutions on individuals and organisations
EVOLUTION OF MANAGEMENT THOUGHT
DIFFERENT APPROACHES
• SCIENTIFIC
• ADMINISTRATIVE
• BUREAUCRATIC CLASSICAL
• GROUP INFLUENCES
• MASLOW’S NEED THEORY
• THEORY X AND THEORY Y
• HAWTHORNE STUDIES
BEHAVIORAL
• THEORY Z
• TOTAL QUALITY MANAGEMENT
• MANAGEMENT BY OBJECTIVES
• SITUATIONAL LEADERSHIP
MODERN
Focuses on the
individual worker‟s
productivity
Focuses on the
functions of
management
Focuses on the
overall
organizational
system
CLASSICAL APPROACH
CLASSICAL APPROACH
I. SCIENTIFIC MANAGEMENT Father of SM: Frederick Taylor
• develop a scientific approach for each element of one‟s work
• scientifically select, train, teach and develop each worker
• cooperate with workers to ensure that jobs match plans and principles
• ensure appropriate division of labor
FOUR PRINCIPLES
• Task Performance
• Supervision
• Motivation
THREE AREAS OF FOCUS
• Piece-rate-incentive system
• Time and motion study
TWO MANAGERIAL PRACTICES
I. SCIENTIFIC MANAGEMENT Father of SM: Frederick Taylor CONT‟D
• SM became nationally known, but the selective implementation of the principles created more harm than good.
• Workers felt that as their performance increased, managers required them to do more work for the same pay.
• Increases in performance meant fewer jobs and greater threat of layoffs
• Monotonous and repetitive
• Dissatisfaction
I. SCIENTIFIC MANAGEMENT cont’d
Henry Gantt and The Gilberths
HENRY GANTT
• Most famous for developing the Gantt chart in the 1910s.
• Implemented a wage incentive program
FRANK GILBERTH
• Specialized in time and motion studies to determine the most efficient way to perform tasks.
• Used motion pictures of bricklayers to identified work elements (therbligs) such as lifting and grasping
LILLIAN GILBERTH
• A strong proponent of better working conditions as a means of improving efficiency and productivity.
I. SCIENTIFIC MANAGEMENT cont’d
Henry Gantt and The Gilberths
I. SCIENTIFIC MANAGEMENT cont’d
Henry Gantt and The Gilberths
II. BUREAUCRATIC MGMT.
Focuses on the overall organizational system.
Need for organizations to function on a rational basis
Bureaucratic management is based upon:
• Firm rules
• Policies and procedures
• A fixed hierarchy
• A clear division of labor
II. BUREAUCRATIC MGMT. cont’d
Father of BM Theory: Max Weber
• A German sociologist and historian who envisioned a system of management
• “a bureaucracy is a highly structured, formalized and impersonal organization.”
MAX WEBER
• Division of labor
• Hierarchy of authority
• Rules and procedures
• Impersonality
• Employee selection and promotion
FIVE PRINCIPLES
IDEAL BUREAUCRACY
III. ADMINISTRATIVE MGMT.
Focused on principles that could be used by managers to coordinate the internal activities of organizations
Five management functions
• planning
• organizing
• commanding
• coordinating
• controlling
III. ADMINISTRATIVE MANAGEMENT cont’d
HENRI FAYOL’s PRINCIPLES of MANAGEMENT
1. Division of labor
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to
the common good
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de corps
CLASSICAL APPROACH Summary
BEHAVIORAL APPROACH
BEHAVIORAL APPROACH
The study of how managers should behave to motivate employees and encourage
them to perform at high levels and be committed to
the achievement of organizational goals.
BEHAVIORAL APPROACH
The behavioral school of management emphasized what the classical theorists ignored.
Acknowledged the importance of human behavior in shaping management style.
Personalities
• Mary Parker Follett
• Douglas McGregor
• Chester Barnard
• Elton Mayo
SELF
ACTUALIZATION
NEED FOR SELF ESTEEM
NEED FOR SOCIAL RELATIONS
NEED FOR SECURITY
PHYSIOLOGICAL NEEDS
Abraham Maslow‟s Hierarchy of Human Needs
BEHAVIORAL APPROACH
BEHAVIORAL APPROACH
Mary Parker Follett ON EFFECTIVE WORK GROUPS
FOUR PRINCIPLES OF COORDINATION
• Coordination requires that people be in direct contact with one another.
• Coordination is essential during the initial stages of any endeavor.
• Coordination must address all factors and phases of any endeavor.
• Coordination is a continuous, ongoing process.
BEHAVIORAL APPROACH cont’d
Mary Parker Follett ON EFFECTIVE WORK GROUPS
BEHAVIORAL APPROACH cont’d
Mary Parker Follett ON EFFECTIVE WORK GROUPS
BEHAVIORAL APPROACH cont’d
Mary Parker Follett ON EFFECTIVE WORK GROUPS
BEHAVIORAL APPROACH cont’d
Douglas McGregor's Proposed Styles
THEORY X
• Most people dislike work and they avoid it when they can.
• Coerced and threatened with punishment before they work.
• Avoid responsibility and have little ambition.
THEORY Y
• Work is a natural activity like play or rest.
• Capable of self direction and self control.
• Committed to organizational objectives.
BEHAVIORAL APPROACH cont’d
Elton Mayo’s View
Aimed to understand how psychological and social processes interact with the work situation to influence performance
Work represents the transition from scientific management to the early human relations movement.
Emphasized on workers themselves and needs to belong to a group
BEHAVIORAL APPROACH cont’d
“HAWTHORNE EFFECT” • Workers perform and react differently when
researchers observe them.
• Productivity increased because attention was paid to the workers in the experiment.
• Phenomenon whereby individual or group performance is influenced by human behavior factors
BEHAVIORAL APPROACH cont’d
Elton Mayo’s Hawthorne Study (1924-1932)
“HAWTHORNE EFFECT”
• The finding that a manager’s behavior or leadership approach can affect worker’s level of performance.
BEHAVIORAL APPROACH cont’d
Elton Mayo’s Hawthorne Study (1924-1932)
MODERN APPROACH
William Ouchi‟s Theory Z
assumes employees have an interest in good working relationships with management and other employees
MODERN APPROACH
William Ouchi‟s Theory Z
Management generally has high confidence in employees, who are encouraged to participate in the management decision making.
MODERN APPROACH cont’d
William Ouchi‟s Theory Z
Employees are viewed as long-term assets who will stay with the same firm throughout their careers.
MODERN APPROACH cont’d
William Ouchi‟s Theory Z
MODERN APPROACH cont’d
William Ouchi‟s Theory Z
MODERN APPROACH cont’d
William Ouchi‟s Theory Z THEORY Z
Long-term Employment
Consensual Decision Making Individual Responsibility
Slow Evaluation & Promotion
Informal Control With Formalized Measures Moderately Specialized Career Path
Holistic Concern
MODERN APPROACH cont’d
Total Quality Management
comprehensive approach for improving product quality and get customer satisfaction
management philosophy of improving product quality through everyone’s
commitment & involvement to satisfy
consumer needs
MODERN APPROACH cont’d
Total Quality Management
Walter A. Shewhart (1920s & 1930s)
Grandfather of quality control
Contributed to understand the process of variability
Developed concept of statistical control charts
MODERN APPROACH cont’d
Total Quality Management
W. Edwards Deming (1940s & 1950s) Father of quality control
Stressed management’s responsibility for quality
Developed “14 points” to guide companies in quality improvement
MODERN APPROACH cont’d
Total Quality Management
W. Edwards Deming (1940s & 1950s) Japanese established “Deming Prize” in his name
15% of quality problems are actually due to worker error
85% of quality problems are caused by systems and errors
MODERN APPROACH cont’d
Total Quality Management
Joseph M. Juran (1950s) Defined quality as “fitness for use” Developed concept of cost of quality Originated idea of quality trilogy
Quality planning Quality control Quality improvement
MODERN APPROACH cont’d
Total Quality Management
Armand V. Feigenbaum (1960s) Introduced the concept of total quality control
MODERN APPROACH cont’d
Total Quality Management
Philip B. Crosby (1970s) Coined phrase “quality is free” Introduced concept of zero defects Developed the phrase “Do it right the first time”
MODERN APPROACH cont’d
Total Quality Management
TQM focuses on serving the customer’s quality needs
MODERN APPROACH cont’d
Total Quality Management
TQM uses continuous improvement, quality at the source, employee empowerment, quality tools, teams, benchmarking, and supplier certification
MODERN APPROACH cont’d
Total Quality Management
Four dimensions: product/service design, conformance, easy of use, post-sale support
MODERN APPROACH cont’d
Total Quality Management
TQM Competitive Benefit
MODERN APPROACH cont’d
Total Quality Management
It makes the company a leader
Fastens the team work
Makes the company more sensitive to customer needs.
Makes the company adapt more readily to changes.
Quality improves
Increased productivity
Staffs are more motivated
Cost reduced
MODERN APPROACH cont’d
Management By Objectives (MBO)
MODERN APPROACH cont’d
also known as Management By Results (MBR), is a
process of defining objectives within an organization so
that management and employees agree to the
objectives and understand what they need to do in the
organization in order to achieve them
Management By Objectives (MBO)
MODERN APPROACH cont’d
Management By Objectives (MBO)
MODERN APPROACH cont’d
Management By Objectives (MBO)
MODERN APPROACH cont’d
Management By Objectives (MBO)
MODERN APPROACH cont’d
Advantages
Develops result-oriented philosophy
Formulation of dearer goals
Facilitates objective appraisal
Raises employee morale
Facilitates effective planning
Acts as motivational force
Facilitates effective control
Facilitates personal leadership
Management By Objectives (MBO)
MODERN APPROACH cont’d
Limitations
Time-consuming
Reward-punishment approach
Increases paper work
Creates organizational problems
Develops conflicting objectives
Problem of coordination
Lacks durability
Problems related to goal-setting
Lack of appreciation
Management By Objectives (MBO)
MODERN APPROACH cont’d
Turning their aims into successful actions, forces
managers to master five basic operations:
1) setting objectives
2) organizing the group
3) motivating and communicating
4) measuring performance
5) developing people, including yourself
Situational Leadership
MODERN APPROACH
Key Reference
Evolution of Management Thought
by Bhavin Aswani, posted Nov. 26, 2012
http://www.slideshare.net/bhavinaswani/evolution-of-management-thought-15357449?qid=61275941-4815-4988-87c1-f57ba7fbfc1f&v=qf1&b=&from_search=4
Other References
The Evolution of Management Study Chapter 2
Posted by Management 2 on Apr. 11, 2009
http://www.slideshare.net/bsetm/chapter-2-the-evolution-of-management-theory?qid=05f93aab-81b0-475e-954b-c0aa2c6ceb2a&v=qf1&b=&from_search=1
Management Yesterday and Today
Posted by Management 2 on Apr. 11, 2009
http://www.slideshare.net/bsetm/chapter-2-the-evolution-of-management-theory-written-in-different-manner?qid=606c7b90-286a-4a98-95e2-613238e6f09c&v=qf1&b=&from_search=3
Other References http://www.slideshare.net/sadhikakatiyar/meaningnaturescopeprocess-of-management-approaches-of-a-system
http://wps.pearsoncustom.com/coco_principles_management/90/23041/5898655.cw/index.html
http://www.strategicmgtpartners.com/library/iceobenefits.html
http://www.inc.com/leigh-buchanan/10-traits-of-a-drucker-like-leader.html
http://www.slideshare.net/SarahWright/email-measurement-is-evolvingare-you
Other References https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcRVCYztnUzMn2DPLRzV86OuLwl63k32IBAb2t2qtGMpMRSCxFah
http://smartbusinesstrends.com/wp-content/uploads/2013/05/peter-drucker-businsess-quotes2.png
http://dilipchandra12.hubpages.com/hub/Frederick-Winslow-Taylor
http://image.slidesharecdn.com/xyztheories-110717231933-phpapp01/95/xyz-theories-of-management-5-728.jpg?cb=1310963416
http://en.wikipedia.org/wiki/Walter_A._Shewhart#/media/File:WalterShewhart.gif
Other References
http://leaderquote.com/wp-content/uploads/2012/04/w-edwards-deming-it-is-not-enough-to-do-your-best-you-must-know-what-to-do-and-then-do-your-best.jpg
http://www.industryweek.com/site-files/industryweek.com/files/uploads/2014/11/Feigenbaum-Cover.jpg
http://blog.proqc.com/remembering-philip-b-crosby-quality-is-free/
http://timvandevall.com/wp-content/uploads/2013/11/Maslows-Hierarchy-of-Needs.jpg
Other References
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