This is analytic studies of modern management theories.

1. Development of The Management
Theories
Sl. No Name Roll Batch
01 H M Saiful
Islam
3252 49th
02 Md. Al Amin 3228 49th
03 Md. Enam
Uddin
3231 49th
04 Rounak Rahma 3241 49th
05 Arafat Hossain 3250 49th
Presented By:
World University of Bangladesh
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2. Presented To:
A.B. M. Siddique
Asst. Professor
Department of Business Administration
World University of Bangladesh
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3. Learning Objectives (Continued)
 You should be able to:
 Discuss management’s relationship to other
academic fields of study
 Explain the value of studying management history
 Identify some major pre-twentieth-century
contributions to management
 Summarize the contributions of the scientific
management advocates
 Describe the contributions of the general
administrative theorists
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4. Learning Objectives
 You should be able to:
 Summarize the quantitative approach to
management
 Describe the contributions of the early
organizational behaviour advocates
 Explain the importance of the Hawthorne Studies to
management
 Describe the effects of: globalization, workforce
diversity, entrepreneurship, e-business, need for
innovation and flexibility, quality management,
learning organizations, and knowledge management
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5. Management’s connection to other
fields of study
 Academic Disciplines that Affected Management
 Anthropology - work on cultures and social
environments
 Economics - concern about the allocation and
distribution of scarce resources
 Philosophy - examines the nature of things
 Political science - effect of political environment on
individuals and groups
 Psychology - seeks to measure, explain, and change
human behavior
 Sociology - studies people in relation to their fellow
human beings
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6. Development of major management theories
Historical
Background Scientific
Management
General
Administrative
Theorists
Quantitative
Approach
Management Theories
Industrial
Revolution
Adam Smith
Early Advocates
Hawthorne Studies
Organizational
Behaviour
Early Examples
of Management
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7. The Time Line of Management Theory
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8. Historical background of management
 Organizations Have Existed for Thousands of
Years
 Significant Pre-Twentieth-Century Events
 Adam Smith
 division of labour - breakdown of jobs into narrow and
repetitive tasks increased productivity
 Industrial Revolution
 substitution of machine power for human power
 large organizations required formal management
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9. Scientific Management Theory
 Evolution of Modern Management
 Began in the industrial revolution in the late 19th
century as:
 Managers of organizations began seeking ways to better
satisfy customer needs.
 Large-scale mechanized manufacturing began to supplanting
small-scale craft production in the ways in which goods were
produced.
 Social problems developed in the large groups of workers
employed under the factory system.
 Managers began to focus on increasing the efficiency of the
worker-task mix.
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10. job specialization and the division
of labor
 Adam Smith (18th century economist)
 Observed that firms manufactured pins in one of
two different ways:
 Craft-style—each worker did all steps.
 Production—each worker specialized in one step.
 Realized that job specialization resulted in much
higher efficiency and productivity
 Breaking down the total job allowed for the division of
labor in which workers became very skilled at their
specific tasks.
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11. F.W. Taylor and Scientific
Management
 Scientific Management
 The systematic study of the relationships between
people and tasks for the purpose of redesigning the work
process for higher efficiency.
 Defined by Frederick Taylor in the late 1800’s to replace
informal rule of thumb knowledge.
 Taylor sought to reduce the time a worker spent on each task
by optimizing the way the task was done.
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12. Four Principles of Scientific
Management
 Principles to increase efficiency:
1. Study the ways jobs are performed now and determine
new ways to do them.
 Gather detailed time and motion information.
 Try different methods to see which is best.
2. Codify the new methods into rules.
 Teach to all workers the new method.
3. Select workers whose skills match the rules.
4. Establish fair levels of performance and pay a premium
for higher performance.
 Workers should benefit from higher output
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13. Problems with Scientific
Management
 Managers frequently implemented only the increased
output side of Taylor’s plan.
 Workers did not share in the increased output.
 Specialized jobs became very boring, dull.
 Workers ended up distrusting the Scientific
Management method.
 Workers could purposely “under-perform.”
 Management responded with increased use of machines
and conveyors belts.
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14. Frank and Lillian Gilbreth
 Refined Taylor’s work and made many improvements
to the methodologies of time and motion studies.
 Time and motion studies
 Breaking up each job action into its components.
 Finding better ways to perform the action.
 Reorganizing each job action to be more efficient.
 Also studied worker-related fatigue problems caused
by lighting, heating, and the design of tools and
machines.
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15. Administrative Management
Theory
 Administrative Management
 The study of how to create an organizational structure
that leads to high efficiency and effectiveness.
 Max Weber
 Developed the concept of bureaucracy as a formal
system of organization and administration designed to
ensure efficiency and effectiveness.
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16. Weber’s Principles
of Bureaucracy
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17. Weber’s Five Principles of
Bureaucracy
 Authority is the power to hold people accountable
for their actions.
 Positions in the firm should be held based on
performance, not social contacts.
 Position duties are clearly identified so that people
know what is expected of them.
 Lines of authority should be clearly identified such
that workers know who reports to who.
 Rules, standard operating procedures (SOPs), and
norms guide the firm’s operations.
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18. Fayol’s Principles of Management
 Division of Labor: allows for job specialization.
 Fayol noted jobs can have too much specialization
leading to poor quality and worker dissatisfaction.
 Authority and Responsibility
 Fayol included both formal and informal authority
resulting from special expertise.
 Unity of Command
 Employees should have only one boss.
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19. Fayol’s Principles of Management
(cont’d)
 Line of Authority
 A clear chain of command from top to bottom of the
firm.
 Centralization
 The degree to which authority rests at the top of the
organization.
 Unity of Direction
 A single plan of action to guide the organization.
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20. Fayol’s Principles of Management
(cont’d)
 Equity
 The provision of justice and the fair and impartial
treatment of all employees.
 Order
 The arrangement of employees where they will be of the
most value to the organization and to provide career
opportunities.
 Initiative
 The fostering of creativity and innovation by
encouraging employees to act on their own.
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21. Fayol’s Principles of Management
(cont’d)
 Discipline
 Obedient, applied, respectful employees are necessary
for the organization to function.
 Remuneration of Personnel
 An equitable uniform payment system that motivates
contributes to organizational success.
 Stability of Tenure of Personnel
 Long-term employment is important for the
development of skills that improve the organization’s
performance.
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22. Fayol’s Principles of Management
(cont’d)
 Subordination of Individual Interest to the Common
Interest
 The interest of the organization takes precedence over
that of the individual employee.
 Esprit de corps
 Comradeship, shared enthusiasm foster devotion to the
common cause (organization).
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23. Behavioral Management Theory
 Behavioral Management
 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.
 Focuses on the way a manager should personally manage
to motivate employees.
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24. Behavioral Management
 Mary Parker Follett
 An influential leader in early managerial theory
 Held a horizontal view of power and authority in
organizations
 Suggested workers help in analyzing their jobs for
improvements—the worker knows the best way to improve
the job.
 If workers have relevant knowledge of the task, then they
should control the task.
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25. PRINCIPLES OF MANAGEMENT
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26. IDEAL BUREAUCRACY
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27. Quantitative approach to
management
 Operations Research (Management Science)
 Use of quantitative techniques to improve decision
making
 applications of statistics
 optimization models
 computer simulations of management activities
 Linear programming - improves resource
allocation decisions
 Critical-path scheduling analysis - improves work
scheduling
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28. Toward understanding organizational
behavior
 Organizational Behavior
 Study of the actions of people at work
 Hawthorne Studies
 Started in 1924 at Western Electric Company
 Elton Mayo - studies of job design
 Changed the dominant view that employees were no
different from any other machines
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29. Early advocates of ob
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30. Current trends and issues
 Globalization
 All organizations are faced with the opportunities and
challenges of operating in a global market
 Workforce Diversity
 Heterogeneous workforce in terms of gender, race,
ethnicity, age, and other characteristics that reflect
differences
 workforce is getting older
 high degree of immigration in Canada
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31. Current trends and issues
(continued)
 Entrepreneurship
 Three important themes
 pursuit of opportunities - capitalizing on environmental
change to create value
 Innovation and uniqueness - introducing new approaches
to satisfy unfulfilled market needs
 growth - not content to remain small
 Will continue to be important in all societies
 Will influence profit and not-for-profit organizations
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32. Current trends and issues
 Managing in an E-Business World
 E-business - comprehensive term describing the way an
organization does its work by using electronic (Internet-
based) linkages with key constituencies
 E-business - any form of business exchange or
transaction in which parties interact electronically
 Intranet - an internal organizational communication
system that uses Internet technology and is accessible
only by organizational employees
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33. Take Home Message
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 Without a good management, it is impossible to
reach the specific goal.
 “Management is not only more complex
than we think, but it is more complex than
we can think.”
 On other hand, “It is more flexible, if
manage a efficient/ skilled manager.”

34. Thank You
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