lecture 2 the evolution of management history

8/18/2019 Lecture 2 the Evolution of Management History

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Introduction to Management

Lecture # 2The Evolution of ManagementHistory

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Learning Outline

1. The Importance Of History Of Management2. What Is Scientific Management And How It Emerged.3. Describe Scientific Management4. Explain Time Motion Studies By The Gilberths5. The Advantages And Disadvantages Of Scientific

Management.6. Describe Administrative Management Theory :

Bereucratic7. Explain 14 Principles Of Management

8. The Pro’s And Con’s Of Administration ManagementTheory 9. Comparison Of Scientific Management And Henry

Fayol’s

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The importance of History of Management

1. To search for better ways to utilize organizationalresources.

2. Management theory doesn't just teach someone

how inspire employees to be more productive, italso shows managers how to be good bosses

3. Theories lead to great achievements. Withouttheories, scientific experiments wouldn't exist

because there would not be anything that we aretrying to prove.

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What is Scientific Management and how it emerged

• Starts during the closing decades of 19th centuryafter the industrial revolution swept throughEurope and America

• Due to this reason, managers of all types trying tofind a better way of managing the industry.

• Adam Smith, has study about management the effectof industrial revolution and came out with job

specialization and division of labor.• What is Job specialization? Is it same as Division of

labor?

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F.W. Taylor and Scientific Management

• Frederick Taylor (1856-1915)• Was a manufacturing manager• Introduced Scientific Management

• Is the study about the relationships betweenpeople an tasks for the purpose of redesigning the work process to increase efficiency.

• This can be done through Job specialization and

division of labor.• Thus he develop 4 principles to increase efficiencyof employees.

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4 principles of Scientific Management

1. Develop a science for each element of an individual’swork, which will replace the old rule-of-thumb method.

2. Scientifically select and then train, teach, and develop the

worker.

3. 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.

4. Divide work and responsibility almost equally betweenmanagement and workers. Management takes over all

work for which it is better fitted than the workers.

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Scientific Management8


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The Gilbert –Time Motion Study9

Frank Bunker Gilbreth was born on July 7,1868 in Fairfield, Maine. He was a bricklayer, a building contractor, and a management engineer.

Lillian Evelyn Moller was born on May24, 1878 in Oakland, California. Shegraduated from the University of California

with a B.A. and M.A. and went on to earn aPh.D. from Brown University.


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Administrative Management Theory

• The study on how to create an organizationalstructure that leads to high efficiency andeffectiveness.

• Two most influential are :-

• Max Weber :- Henry Fayol

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German sociologist,philosopher, andpolitical economist who profoundly

influenced social theory , social research, and thediscipline ofsociology itself.

was a Frenchmining engineerand director of

mines whodeveloped a generaltheory of business administration

http://en.wikipedia.org/wiki/German_peoplehttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Philosophyhttp://en.wikipedia.org/wiki/Political_economyhttp://en.wikipedia.org/wiki/Social_theoryhttp://en.wikipedia.org/wiki/Social_theoryhttp://en.wikipedia.org/wiki/Social_researchhttp://en.wikipedia.org/wiki/Social_researchhttp://en.wikipedia.org/wiki/Social_researchhttp://en.wikipedia.org/wiki/Social_theoryhttp://en.wikipedia.org/wiki/Social_researchhttp://en.wikipedia.org/wiki/Social_researchhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Mining_engineerhttp://en.wikipedia.org/wiki/Fayolismhttp://en.wikipedia.org/wiki/Fayolismhttp://en.wikipedia.org/wiki/Fayolismhttp://en.wikipedia.org/wiki/Fayolismhttp://en.wikipedia.org/wiki/Mining_engineerhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Social_researchhttp://en.wikipedia.org/wiki/Social_theoryhttp://en.wikipedia.org/wiki/Political_economyhttp://en.wikipedia.org/wiki/Philosophyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/German_people


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Theory of Bureaucracy – Max Waber

© 2007 Prentice Hall, Inc. All rights reserved.

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Henri Fayol (1841 –1925)

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1. Division of work 2. Authority

3. Discipline

4. Unity of command

5. Unity of direction

6. Subordination of individual interests to the general interests7. Remuneration

8. Centralization

9. Scalar chain

10. Order

11. Equity 12. Stability of tenure of personnel

13. Initiative

14. Esprit de corps


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Henri Fayol-14 PrinciplesElements Definition1. Division of Work

Work should be divided among individuals and group toensure that the effort and attention are focused on specialtask.

2. Authority The right to give orders and the power to exact obedience

3. Discipline Every employees should have discipline in order to achievesuccess.

4. Unity ofCommand Employees should received orders from only one manager.

5. Unity ofDirection

The entire organization should moving toward a commonobjective in common direction.


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Henri Fayol-14 PrinciplesElements Definition6. Subordinationof Individualinterest togeneral Interests

The interest of one person should not take priority over theinterest of the organization as a whole.

7. Remuneration Every organization should determine and givesremuneration to employees.

8. Centralization The decision making process which focuses on topmanagement

9. Scalar Chain Clearly defined and limited chain of command from the topto the bottom levels

10. Order The positions of material and people within organizations


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Henri Fayol-14 PrinciplesElements Definition11. Equity All employees should be treated equally 12. Stability ofTenurePersonnel

Organization should focus and be responsible to maintainthe stability of organization.

13. Initiative Management should encourage worker initiative.

14. Esprit decorps

Management should encourage worker’s team spirit andharmony working environment.


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Comparison

Basis Taylor Fayol

Human aspect Taylor disregards humanelements and there is more

stress on improving men,

materials and methods

Fayol pays due regards onhuman element. E.g. Principle

of initiative, Espirit De’ Corps

and Equity recognizes a need

for human relations

Status Father of scientificmanagement

Father of managementprinciples

Efficiency & administration Stressed on efficiency Stressed on general

administration

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Comparison

Basis Taylor Fayol

Approach It has micro-approach becauseit is restricted to factory only

It has macro-approach anddiscuses general principles of

management which are

applicable in every field of

management.

Scope of principles These principles are restrictedto production activities

These are applicable in allkinds of organization regarding

their management affairs

Achievement Scientific management Administrative management

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Organization environment:- Contingency Theory

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Contingency Theory The idea that the organizational structures andcontrol systems manager choose are

contingent on characteristics of the externalenvironment in which the organizationoperates.“There is no one best way to organize”

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Organization environment:-

Contingency Theory

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lecture 2 the evolution of management history

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