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Chapter 2

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Chapter 2

  1. 1. MGT 113 PRINCIPLES OF MANAGEMENT ManagementTheories-history and current thinking Chapter Two 1
  2. 2. Historical Background Of Management• Organizations Have Existed for Thousands of Years – testifies to the existence of early management practice • ability to create the Pyramids, Great Wall of China• Significant Pre-Twentieth-Century Events – Wealth of Nations - Adam Smith • division of labor - breakdown of jobs into narrow and repetitive tasks increased productivity – Industrial Revolution • substitution of machine power for human power • large organizations required formal management 2
  3. 3. Historical Background Of ManagementSiapakah Bapa Pengurusan Scientific Management? 3
  4. 4. Historical Background Of Management• Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an American mechanical engineer who sought to improve industrial efficiency.• He is regarded as the father of scientific management and was one of the first management consultants.• Taylor was one of the intellectual leaders of the Efficiency Movement and his ideas, broadly conceived, were highly influential in the Progressive Era. 4
  5. 5. Scientific Management• F.W. Taylor 1856-1915 “Father of Scientific Management” – use of scientific methods to define the “one best way” for a job to be done. – perspective of improving the productivity and efficiency of manual workers. – Current practice: Pace productivity- a consulting company that offers time efficiency analysis services to managers. The company uses proprietary instrument called a Time corder, a handheld electronic device that allows employees to track their own time by pushing buttons associated with pre coded work activities. When an employee presses a new button, time stops recording on the previous activity and begins recording on a new one. The Time corder tracks how many times each activity occurs as well as how much time is cumulatively spent on each activity. Pace productivity provides managers with summary reports concerning how many times work activities are performed, time spent on them, and suggestions for improving worker efficiency based upon the results of their study. 5
  6. 6. Scientific Management• Frank Gilbreth (1868-1924) and Lillian Gibreth (1878-1972)-use of motion pictures to study hand-and-bodymovements-Motion analysis is used today primarily to establish jobperformance standards. Each movement or motionthat is used to do a job is studied to determine howmuch time and movement takes and how necessary itis performing the job. Inefficient or unnecessarymotions are pinpointed and eliminated. (refer table 2.1Sample variables considered in analyzing motionspg.57 Modern Management Concepts and skills 11thedition Samuel C. Certo & S. Trevis Certo) 6
  7. 7. Scientific ManagementCan you give an example of Time and Motion Study oftoday?Answer:Improve traffic lights sequence during rush hour traffic! 7
  8. 8. Scientific Management•Henry L. Gantt (1861-1919)• Scheduling Innovation The Gantt Chart-thischart provides managers with an easilyunderstood summary of what work wasscheduled for specific time periods, how much ofthis work has been completed, and by whom itwas done. Eg: MacSchedule a special computersoftware to help managers more efficiently andeffectively apply the concept of Gantt Charttoday. 8
  9. 9. Scientific Management• A Gantt chart is a common tool for project planning and keeping track of the status of individual tasks within a project.• Excel is a popular tool for creating Gantt charts, but for more advanced project management activities, you may need a tool such as Microsoft Project or a project management add-in for Excel 9
  10. 10. General Administrative Theorists• Henri Fayol (1841-1925) – concerned with making the overall organization more effective – developed theories of what constituted good management practice • proposed a universal set of management functions • published principles of management – fundamental, teachable rules of management 10
  13. 13. ACTIVITY…. 13
  14. 14. 1. Explain using keywords in a mind map thetheories implemented by Frederick Taylor, FrankGilbreth &Henry L Gantt (10mins)2.Use a mind map to draw our the 14 principlesof management introduced by Henri Fayol.(10mins) 14
  15. 15. THE BEHAVIORAL APPROACHa. To management calls for Works of the Western a broad understanding Electric Company. Two of the ways in which phases of Hawthorne different people Studies as:- behave, respond, and interact with one i. The Relay Assembly Test another in work Room Experiments? situations like this one. ii. The bank Wiringb. The Hawthorne Studies- Observation Room a series of studies Experiment? conducted between 1924 and 1932, which sources www.google.com investigated the behavior and attitudes of workers at the Hawthorne (Chicago) 15
  16. 16. THE MANAGEMENT SCIENCE APPROACHOperations Research (Management Science)-Use of quantitative techniques to improve decisionmaking:- • applications of statistics. • optimization models. • computer simulations of management activities.-Linear programming - improves resource allocationdecisions.-Critical-path scheduling analysis - improves workscheduling. 16
  17. 17. EXAMPLE Linear Responsibility Chart for Asia Water Exhibition 2012 WBS/Activity Organizer Sales CS Finance Admin/HR Engineering Field Service Q/A 1 Booth booking and and e manual forms N I,P O N, A 2 Brochures I, O,P N N 3 Souveneirs I, P,O N,I 4 Wet Demo Unit O,I N I,P 5 Invitation Cards B I, O,P 6 Exhibitor Tags B N P,O 7 Name Cards B,I I P 8 Bunting I P 9 Stationery, Tools & Packing Materials I P,O N,I I10 Electrical Tools for Demo Unit N P11 Time Table for Exhibition I,P O N N N N12 Set Up B I,N I,P I,O, N N N13 Water Dispenser Bottles for Demo Unit I,O I N P14 Pack Down N P N151617181920 A = Approval P = Primary Responsibility R = Review N = Notification O = Output I = Input B = Initiation 17
  18. 18. THE CONTINGENCY APPROACH-The contingency approach to management emphasizesthat what managers do in practice depends on, or itscontingent upon, a given set of circumtances-a situation.-“If – then” relationships.-Eg:- If a manger has a group of inexperiencedsubordinates, then the contingency approach wouldrecommend that he or she lead in a different fashion than ifthe subordinates were experienced.-The main challenges of using the contingency approachare the following:-a. Perceiving organizational situations as they actually exist.b. Choosing the management tactics best suited those situations.c. Competently implementing those tactics. 18
  19. 19. THE SYSTEM APPROACH-A system is a number of interdependent parts functioning as a whole for somepurpose.Types of systemsa. Closed systems - are not influenced by, and do not interact with, their environments.b. Opened systems - is continually interacting with its environment.Systems and “Wholeness” Six guidelines for anyone conducting system analysis by L. Thomas Hopkins. 1) Wholeness main focus of the analysis and parts receiving secondary attention. 2) Integration 3) Modifications in each part should be weighed in relation to possible effects on every other part. 4) Each part has some role to perform so that the whole can accomplish its purpose. 5) The nature of the part and its function is determined by its position in the whole. 6) All analysis starts with the existence of the whole. the parts and their interrelationships should then evolve to best suit the purpose of the whole. 19
  20. 20. THE SYSTEM APPROACHThe open management system 20
  21. 21. THE SYSTEM APPROACHInformation for Management System Analysis Triangular management model-pg 68 Modern Management Concepts and Skills 11th Edition Samuel C. Certo & S. Trevis Certo 2009. 21
  22. 22. LEARNING ORGANIZATION: A NEW APPROACH• A learning organization is an organization that does well in creating, acquiring, and transferring knowledge, and in modifying behavior to reflect new knowledge.• It is emphasizes systematic problem solving, experimenting with new ideas, learning from experience and past history, learning from experiences of others, and transferring knowledge rapidly throughout the organizations.• Mangers attempting to build a learning organization must create an environment conducive to learning and encourage the exchange of information among all of organization members. Honda, Corning and General Electrics are successful learning organizations. 22
  23. 23. LEARNING ORGANIZATION: A NEW APPROACHPeter Senge The Fifth Discipline: The Art and Practice of The Learning Organization recommend five features building learning organizations are:-i. Systems thinkingii. Shared visioniii. Challenging of mental modelsiv. Team learningv. Personal mastery 23
  25. 25. QUESTION:What are the 5 different approachesmanagement?Answer: (Discuss in the facebook forum)Who are the three important people whoimplemented scientific management theories?Answer: (Discuss in the facebook forum.) 25
  26. 26. a) Any feedback, suggestions and comments, please put your query at face book to be share among team members. Thank you. 26