Principles of Management Learning Session # 7 Dr. A. Rashid Kausar

Re-cap of Session # 6

Management Yesterday and Today

Major viewpoints in the development of modern management MANAGEMENT THEORIES Pre-classical Contributors Classical Viewpoint Behavioral Viewpoint Quantitative Viewpoint Contemporary Viewpoint Scientific Management Early Behaviorists Operations Research Systems Theory Administrative Management Hawthorne Studies Operations Management Contingency Theory Bureaucratic Management Human Relations Movements Management Information Science Emerging Views Behavioral Science Approach Major viewpoints in the development of modern management

Early Management ideas 1. Robert Owen (1771–1858) 2. Charles Babbage (1792–1871) 3. Henry R. Towne (1844 –1924)

Early Management ideas Charles Babbage Interest in operations of factories.Built 1st mechanical calculator, ideas on work (physical & mental) specialisation, production efficiency, costing, incentive and profit-sharing plans.

Pre-classical 3.Industrial Revolution Prior to 1900s Machine Power Vs Human Power !

Early Management Ideas Assessing the early contributions: 1.Uncoordinated efforts. 2.Contributions tended to relate to specific problems. 3.Did not see ‘Management’ as a separate field or skill (until Towne).

Early Management ideas Henry R. Towne (1844–1924) Called for a ‘management science’ and for development of “Principles of Management”.

Classical Scientific Management Bureaucratic Management Administrative Management

Classical Viewpoint This viewpoint emphasises on finding ways to manage Work and Organizations more efficiently !

Classical Theorists 1.Scientific Management 2.Bureaucratic Management F. W. Taylor, F. & L. Gilbreth, H. Gantt 2.Bureaucratic Management M. Weber 3.Administrative Management H. Fayol

Classical Scientific Management Frederick W. Taylor (1865-1915) Modern Management Theory Principles of Scientific Management published (1911)

Scientific Management The use of scientific methods to determine, “the one best way” for a job to be done! OR

Scientific Management An approach focusing on scientific study of work methods to improve worker’s efficiency.

Four Principles of Scientific Management Taylor’s Four Principles of Scientific Management 1.Study each part of a task scientifically, and develop a best method to perform it.

Four Principles of Scientific Management Taylor’s Four Principles of Scientific Management 2.Carefully select workers and train them to perform a task using the scientifically developed method.

Four Principles of Scientific Management Taylor’s Four Principles of Scientific Management 3.Co-operate fully with workers to ensure they use the proper method.

Four Principles of Scientific Management Taylor’s Four Principles of Scientific Management 4.Divide work and responsibility so management is responsible for planning work methods using scientific principles and workers are responsible for executing work accordingly.

Scientific Management Frank & Lillian Gilbreth Time & motion studie Human implications of Scientific Management Henry Gantt Pay incentives Gantt chart

Classical Beurocrative Management German Sociologist (Max Weber .. 1864 -1920 ) An approach emphasising the need for organizations to operate in a rational manner rather than relying on owner’s and manager’s whims!

Classical Weber’s Ideal Bureaucracy A form of organization characterized by: division of labor, clear defined hierarchy, detailed rules and regulations, and impersonal relationships.

Classical Weber’s Ideal Bureaucracy 1.Impersonality: Rules, procedures, sanctions be applied uniformly regardless of individual personalities and personal considerations.

Classical Weber’s Ideal Bureaucracy 2.Formal Rules & Procedures: Written rules should specify the work behavior desired from organization members and ensuring uniformity.

Classical Weber’s Ideal Bureaucracy 3. Well-defined Hierarchy: Multiple levels of positions with clear reporting relationships among levels with an ability to establish accountability of actions.

Classical Weber’s Ideal Bureaucracy 4. Specialization of Labor: Jobs are broken down into well-defined tasks so members know what is expected of them and hence they can become extremely competent at their tasks.

Classical Weber’s Ideal Bureaucracy 5. Career Advancement on basis of Merit: Selection and promotion is based on member’s qualification and performance.