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Introduction to Management : 

Introduction to Management Course Instructor: Kanwal Gurleen Lecturer, LSB 2,3

Learning Objectives : 

Learning Objectives Historical Background of Management Explain why studying management history is important. Describe some early evidences of management practice. Scientific Management Describe the important contributions made by Fredrick W. Taylor and Frank and Lillian Gilbreth. Explain how today’s managers use scientific management.

Slide 3: 

General Administrative Theory Discuss Fayol’s contributions to management theory. Describe Max Weber’s contribution to management theory. Explain how today’s managers use general administrative theory. Quantitative Approach Explain what the quantitative approach has contributed to the field of management. Discuss how today’s managers use the quantitative approach. Learning Objectives

Slide 4: 

Toward Understanding Organizational Behavior Describe the contributions of the early advocates of OB. Explain the contributions of the Hawthorne Studies to the field of management. Discuss how today’s managers use the behavioral approach. The Systems Approach Describe an organization using the systems approach. Discuss how the systems approach helps us management. Learning Objectives

Slide 5: 

The Contingency Approach Explain how the contingency approach differs from the early theories of management. Discuss how the contingency approach helps us understand management. Current Issues and Trends Explain why we need to look at the current trends and issues facing managers. Describe the current trends and issues facing managers. Learning Objectives

Historical Background of Management : 

Historical Background of Management Ancient Management Egypt (pyramids) and China (Great Wall) Venetians (floating warship assembly lines) Adam Smith Published “The Wealth of Nations” in 1776 Advocated the division of labor (job specialization) to increase the productivity of workers Industrial Revolution Substituted machine power for human labor Created large organizations in need of management

Exhibit 2–1 Development of Major Management Theories : 

Exhibit 2–1 Development of Major Management Theories

Major Approaches to Management : 

Major Approaches to Management Scientific Management General Administrative Theory Quantitative Management Organizational Behavior Systems Approach Contingency Approach

Scientific Management : 

Scientific Management Fredrick Winslow Taylor The “father” of scientific management Published Principles of Scientific Management (1911) The theory of scientific management Using scientific methods to define the “one best way” for a job to be done: Putting the right person on the job with the correct tools and equipment. Having a standardized method of doing the job. Providing an economic incentive to the worker.

Exhibit 2–2 Taylor’s Four Principles of Management : 

Exhibit 2–2 Taylor’s Four Principles of Management Develop a science for each element of an individual’s work, which will replace the old rule-of-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 and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.

Scientific Management (cont’d) : 

Scientific Management (cont’d) Frank and Lillian Gilbreth Focused on increasing worker productivity through the reduction of wasted motion Developed the microchronometer to time worker motions and optimize work performance How Do Today’s Managers Use Scientific Management? Use time and motion studies to increase productivity Hire the best qualified employees Design incentive systems based on output

General Administrative Theory : 

General Administrative Theory Henri Fayol Believed that the practice of management was distinct from other organizational functions Developed fourteen principles of management that applied to all organizational situations

Exhibit 2–3 Fayol’s 14 Principles of Management : 

Exhibit 2–3 Fayol’s 14 Principles of Management Division of work. Authority. Discipline. Unity of command. Unity of direction. Subordination of individual interests to the general interest. Remuneration. Centralization. Scalar chain. Order. Equity. Stability of tenure of personnel. Initiative. Esprit de corps.

Quantitative Approach to Management : 

Quantitative Approach to Management Quantitative Approach Also called operations research or management science Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems

Understanding Organizational Behavior : 

Understanding Organizational Behavior Organizational Behavior (OB) The study of the actions of people at work; people are the most important asset of an organization Early OB Advocates Robert Owen Hugo Munsterberg Mary Parker Follett Chester Barnard

The Hawthorne Studies (1927–1932) : 

The Hawthorne Studies (1927–1932) Conducted by Elton Mayo and associates at Western Electric Illumination study—workplace lighting adjustments affected both the control and the experimental groups of production employees. Group study—implementation of piecework incentive plan caused production workers to establish informal levels of acceptable individual output. Interview program—confirmed the importance of human behavior in the workplace.

The Systems Approach : 

The Systems Approach System Defined A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. Basic Types of Systems Closed systems Are not influenced by and do not interact with their environment (all system input and output is internal). Open systems Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.

Exhibit 2–6 The Organization as an Open System : 

Exhibit 2–6 The Organization as an Open System

Implications of the Systems Approach : 

Implications of the Systems Approach Coordination of the organization’s parts is essential for proper functioning of the entire organization. Decisions and actions taken in one area of the organization will have an effect in other areas of the organization. Organizations are not self-contained and, therefore, must adapt to changes in their external environment.

The Contingency Approach : 

The Contingency Approach Contingency Approach Defined Also sometimes called the situational approach. There is no one universally applicable set of management principles (rules) by which to manage organizations. Organizations are individually different, face different situations (contingency variables), and require different ways of managing.

Exhibit 2–7 Popular Contingency Variables : 

Exhibit 2–7 Popular Contingency Variables Organization size As size increases, so do the problems of coordination. Routineness of task technology Routine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or nonroutine technologies. Environmental uncertainty What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment. Individual differences Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations.

Current Trends and Issues : 

Current Trends and Issues Globalization Ethics Workforce Diversity Entrepreneurship E-business Knowledge Management Learning Organizations Quality Management

Current Trends and Issues (cont’d) : 

Current Trends and Issues (cont’d) Globalization Management in international organizations Political and cultural challenges of operating in a global market Working with people from different cultures Coping with anticapitalist backlash Movement of jobs to countries with low-cost labor Ethics Increased emphasis on ethics education in college curriculums Increased creation and use of codes of ethics by businesses

Current Trends and Issues (cont’d) : 

Current Trends and Issues (cont’d) Workforce Diversity Increasing heterogeneity in the workforce More gender, minority, ethnic, and other forms of diversity in employees Aging workforce Older employees who work longer and do not retire The increased costs of public and private benefits for older workers An increasing demand for products and services related to aging.

Current Trends and Issues (cont’d) : 

Current Trends and Issues (cont’d) Entrepreneurship Defined The process of starting new businesses, generally in response to opportunities. Entrepreneurship process Pursuit of opportunities Innovation in products, services, or business methods Desire for continual growth of the organization

Current Trends and Issues (cont’d) : 

Current Trends and Issues (cont’d) E-Business (Electronic Business) The work preformed by an organization using electronic linkages to its key constituencies E-commerce: the sales and marketing aspect of an e-business

Current Trends and Issues (cont’d) : 

Current Trends and Issues (cont’d) Learning Organization An organization that has developed the capacity to continuously learn, adapt, and change. Knowledge Management The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance.

Current Trends and Issues (cont’d) : 

Current Trends and Issues (cont’d) Quality Management A philosophy of management driven by continual improvement in the quality of work processes and responding to customer needs and expectations Inspired by the total quality management (TQM) ideas of Deming and Juran Quality is not directly related to cost Poor quality results in lower productivity

What is Management? : 

What is Management? A set of activities planning and decision making, organizing, leading, and controlling directed at an organization’s resources human, financial, physical, and information with the aim of achieving organizational goalsin an efficient and effectivemanner.

The Management Process : 

The Management Process

The Management Process (cont’d) : 

The Management Process (cont’d) Planning and Decision Making Setting an organization’s goals and selecting a course of action from a set of alternatives to achieve them. Organizing Determining how activities and resources are grouped. Leading The set of processes used to get organizational members to work together to advance the interests of the organization. Controlling Monitoring organizational progress towards goals.

Terms to Know : 

Terms to Know Division of labor (or job specialization) Industrial Revolution scientific management general administrative theory principles of management bureaucracy quantitative approach organizational behavior (OB) Hawthorne Studies system closed systems open systems contingency approach workforce diversity entrepreneurship e-business (electronic business) e-commerce (electronic commerce) intranet learning organization knowledge management quality management

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