2. Objectives 1. An understanding of the classical approach to management
2. An understanding of the behavioral approach to management
3. An understanding of how the management science approach has evolved
4. An understanding of the system approach
5. Knowledge about the learning organization approach
6. An understanding of contingency approach

3. The Industrial Revolution provided the impetus for developing various Management Theories and Principles
Management philosophies and organizational forms changes over time to meet new needs. But some ideas and practices from the past are still relevant and applicable
Studying history does not mean arranging events in chronological order,
For the management it is the way to achieve strategic thinking, see the big picture and improve conceptual skills.

4. EVOLUTION OF MANAGEMENT THOUGHT

5. APPROACHES TO MANAGEMENT
1- Classical Approach
2- Behavioral Approach
3- Management Science Approach
4- Contingency Approach
5- System Approach
6- Learning Organization: A New Approach ?

6. DIFFERENT APPROACHES CLASSICAL BEHAVIOURAL MODERN SCIENTIFIC
ADMINISTRATIVE
BUREAUCRATIC
CLASSICAL
GROUP INFLUENCES
MASLOW’S NEED THEORY
THEORY X AND THEORY Y
HAWTHORNE STUDIES
BEHAVIOURAL
SYSTEM
CONTINGENCY
THEORY Z AND QUALITY MANAGEMENT
MODERN

7. CLASSICAL APPROACH Focuses on the overall organizational system
Focuses on the individual worker’s productivity
Focuses on the functions of management

8. Classical Approach
The classical approach recommends that managers continually strive to increase organizational efficiency in order to increase production.

9. The Classical Approach
Lower-Level Management Analysis
Frederick W.Taylor (1856–1915)
Work at Bethlehem Steel Co.
Frank Gilbreth (1868–1924) and Lillian Gilbreth (1878–1972)
Motion study
“The Right Way
“The Wrong Way”
Henry L. Gantt (1861–1919)
Scheduling Innovation
Rewarding Innovation

10. Fredrick W. Taylor ( )
Because of significance of his contribution he is commonly called “father of scientific management”.
His primary goal was to increase worker efficiency by scientifically designing jobs.
His basic proposition was that every job had one best way to do it and this way should be discovered and put into operation.
Taylor made the assumption that any worker’s job could be reduced to a science. To construct the “science of shoveling” he obtained answers thru observation and experimentation- to following questions:

11. By the end of third year after Taylor’s shoveling efficiency plan implemented, records at Bethlehem Steel Co. showed;
That total number of shovelers needed was reduced from 600 to 140
The average number of tons shoveled per worker per day rose from 16 to 59
The average earnings per worker per day increased from 1,15$ to 1,88$
The average cost of handling a long ton (2,240 pounds&1,016kgs) dropped from 0.072$ to all in all
It is impressive demonstration of the applicability of scientific management to task of shoveling.

12. The Principal of Scientific Management
1- Establish celear rules on how work was to be performed. (Rule of Thumb)
2- Select training / develop workers
3- Coorporate with workers / insure work is consistent with rules identified.
4- Equal division of work, responsibility between management / workers.

13. HENRY FAYOL ( )
His writing on the elements and general principles of management, Henri Fayol, is usually regarded as the pioneer of administrative theory.
The elements of management he outlined –
Planning, organizing, commanding, coordinating and control
are still considered worthwhile divisions under which to study, analyze and effect the management process.

14. The Classical Approach
Comprehensive Analysis of Management
Henri Fayol (1841–1925)
1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interests to the general interests
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps

15. Division of Work, work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the tasks. Fayol presented work specialization as the best way to use authority to use human resources of the orgnztn.
Authority, concept of authority and responsibility are closely related. Authority, as the right to give orders and the power exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever asssumes authority also assumes responsibility.
Discipline, a successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.

16. Unity of Command- workers should receive orders from only one manager.
Unity of direction- the entire organization should be moving toward common objective, in a common direction.
Subordination of individual interests to the general interest- interest of one person should not take priority over the interests of organization as a whole.
Remuneration- many variables such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a workers rate of pay.
Centralization- he described it, as lowering the importance of subordinate role. Decentralization is increasing the importance. The decision making in the hands of a few people or spread through employees at different levels.

17. Scalar chain- managers in hierarchies are a part of a chainlike authority scale. Each manager, from first line supervisor to president, possesses certain amount of authority. The president possesses the most lower level manager the least. Lower level managers should always keep upper-level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.
Order- for the sake of efficiency and coordination, all materials and people related to a specific kind of work should be assigned to the same general location in the organization.
Equity- all employees should be treated as equally as possible.

18. Stability of tenure of personnel- retaining productive employees should always be high priority of management, recruitment and selection costs as well as increased product reject rates are usually associated with hiring new workers.
Initiative- Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken thru self-direction.
Esprit de corps- management should encourage harmony and general good feelings among employees.
Fayol covers broad range of topics, organizational efficiency, the handling of people, and appropriate management action are three general themes he stresses. With the writings of Fayol, the study of management as a broad, comprehensive activity began to receive more attention.

19. BUREAUCRATIC MANAGEMENT
Bureaucracy is an administrative system designed to accomplish large-scale administrative tasks by systematically coordinating the work of many individuals.

20. Characteristics 1 Division of Labor 2 Managerial Hierarchy
3 Formel Selection
4 Career Orientation
5 Formal Rules
6 Impersonality

21. Advantages and Disadvantages of C.A.

22. BEHAVIORAL APPROACH
The B.A. emphasize increasing production thru understanding of people. If managers understands their people and adapt their organization to them, organizational success will follow.
It is usually described as beginning with a series of studies conducted between 1924 and 1932, which investigated the behavior and attitudes of workers at the Hawthorne Works of the western Electric Company.
Hawthorne studies usually divided into two phases:
1- The Relay Assembly test Room Experiments
2- The Bank wiring observation room experiment.

23. The Relay assembly test room experiment
This experiment originally had a scientific management orientation.
The experimenters believed if they studied productivity long enough under different working conditions including, variations in weather conditions, temperature, rest periods, work hours, and humidity, they would discover the working conditions that maximized production.
The immediate purpose of this was to determine the relationships between intensity of lighting and worker efficiency as measured by workers output.
Two groups of female employees were subjects.
In one group lighting intensity varied, in the other not.
The result of the experiments surprised the experimenters why?

24. No matter what conditions employees were exposed to, production increased. They found no consistent relationship between productivity and lighting intensity.
Extensive interview campaign was conducted; main reason formulated from the interview findings
a) Subjects found working in the test room enjoyable.
b) the new supervisor relationship during the experiment allowed the subjects to work freely, with no fear.
c) subjects seemed to be become friendly as a group.
They concluded, human factors within organizations could significantly influence production.

25. Recognizing Human variables
Hawthorne study results helped managers to see that understanding what motivates employees is a critical part of being a manager.

26. Human Relations Movement
The Hawthorne studies sparked the human relations movement, a people-oriented approach to management,
The ultimate objective of this approach is to enhance organizational success by building appropriate relationships with people.
Human relations skill is defined as the ability to work with people in a way that enhances organizational success.

27. Abraham Maslow believed that managers must understand
Physiological
Safety
Social
Esteem
Self-actualization

29. MANAGEMENT SCIENCE APPROACH
Churchman, Ackoff, and Arnoff define management science or operations research approach as;
Management science approach suggests that managers can best improve their organizations by using the scientific method and mathematical techniques to solve operational problems.

30. Beginning of management science approach
Management science or operations research, approach can be traced to World War II to help to solve complex problem in military
The scientific method dictates that scientists:
1. Observe the system, whose behavior must be explained to solve
2. Construct a generalized framework (a model), consistent specific observation, consequences of changing the system, be predicted.
3. Deduce, use the model, how the system will behave under conditions that have not been observed if the changes were made.
4. Test the model by performing experiment on actual system to see whether effects of changes predicted using the model actually occur when the changes are made.

31. Management Science Today
After World War II, managers interested use science methodology in industrial complex problems.
by 1955, it proved successful in industrial, its techniques and analytical tools.
by 1965, its applied diverse management problems; production scheduling, plant location and product packaging.
In 1980s, OR techniques were used extensively in large, complex organizations.
Finding ways to apply management science techniques to smaller organizations is undoubtedly a worthwhile challenge for managers in 21st century.

32. The Management Science Approach
Characteristics of Management Science Applications
1) Problems studied are complicated, analyzing large variables, increase effectiveness
2) Economic implications as guidelines for making particular decisions, factors such as, sales, expenses, units of production
3) Mathematical models to investigate the decision situation
4) Use of computers, great complexity of managerial problems and sophisticated mathematical analysis of problem related info required
Today managers use such tools as inventory control models, network models, probability models to aid them in decision making.

33. The Contingency Approach
It emphasizes that what managers do in practice depend upon, or contingent upon, a given of circumstances, a situation. It emphasizes “if-then” relationships. If the situation variable exists “then” manager probably would take this action. It attempts to outline the conditions in which various management methods have best chance of success. Main challenges; 1. Perceiving organizational situations as they actually exist 2. Choosing the management tactics best suited to those situations 3. Competently implementing those tactics Managers are to apply management concepts, principles successfully they must consider realities of specific orgnl circumstances they face

34. The System Approach
It is based on the general system theory. Ludwig von Bertalanffy, recognized as the founder of general system theory.
to understand fully the operation of an entity, the entity must be viewed as a system. It is a number interdependent parts functioning as whole for some purposes.
It integrates the knowledge of various specialized fields to the system as a whole can be better understood.
Types of Systems ,
Closed
Open

35. Closed versus Open system
Closed systems are not influenced by, do not interact with their environments.
Most mechanical and have predetermined motions or activities that must be performed regardless of the environment. Example is clock.
Open systems is continually interacting with its environment. Example is plant.

36. The System Approach Systems and “Wholeness”
Concept of “wholeness” is important in general system analysis. System must be viewed as a whole and modified only through changes in its parts.
L. Thomas Hopkins suggested guidelines anyone who conducts it
1. The whole should be the main focus of analysis, parts secondary
2. Integration is the key variable in wholeness analysis
3. Modifications weighed in relation to effects on every other part
4. Each part has some role to perform
5. Part and its function determined by its position in the whole
6. All analysis starts with the existence of the whole

37. The Management System
The system approach to management is based on general system theory, analysis of the management situation as system stressed.
Parts of the management system and information can be used to analyze the system.
As with all systems, management system is composed of a number of parts that function interdependently to achieve its purpose. The main parts of the management system are
Organizational input; organizational resources
Organizational process ; production process
Organizational outputs ; finished goods

38. The System Approach

39. Management system is an open system, that interacts with its environment. Environmental factors;
Government, suppliers, customers and competitors
They represent potential environmental influence that could significantly change future of management system.
Examples; e-signatures
Critical importance of managers knowing and understanding various components of their organizations’ environments, best illustrated by constant struggle of supermarket managers to know and understand their customers.
Market research done by retailers.

40. INFORMATION FOR MANAGEMENT SYSTEM ANALYSIS
General system theory supports use of information from many specialized disciplines to better understand a system.
Information from any discipline that can increase the understanding of management system operations enhances the success of the system.
Information use to discuss management system comes from three primary sources:
1- Classical Approach to management
2- Behavioral Approach to management
3- Management science approach to management
The use of three sources of information to analyze the management system is referred to as triangular management.

41. The System Approach

42. These three sources of mentioned are not meant to represent all the information can be used to analyze management system. Rather these sources of information are most useful in analysis.
A synthesis of classically based info, behaviorally based info, management science based info, is critical to use of the management system.
The remaining part of the year, will discuss these info, planning, organizing, influencing, controlling and modern challenges.

43. Learning Organization : A New Approach?
History of management by different approaches evolved thru time and focused on particular needs of organizations at a time.
Nowadays managers search for new approaches.
Fueling this search, b’cos new issues;
concern about decline of western firms,
accelerating pace of technological change,
sophistication of customers,
increasing emphasis on globalization.
New approach is evolving to handle this new range of issues can be called learning organization.

44. A Learning organization is an organization that does well in creating, acquiring, and transferring knowledge and in modifying behavior to reflect new knowledge.
They emphasize systematic problem solving, experimenting with new ideas, learning from experience and past history, learning experiences of others, and transferring knowledge rapidly throughout the organization.
Managers attempting to build a learning organization must create an environment conducive to learning and encourage the exchange of information among all orgnztn members

45. It represents new management paradigm, fundamental way of viewing and contemplating management.
Peter Senge started discussion with The Fifth Discipline: The Art & Practice of learning organization.
According to him, building it entails building 5 features within orgnz.
1. Systems Thinking, each member understand to provide final pro
2. Shared Vision, each member have common view, commitment
3. Challenging of Mental Models, challenge the way business done
4. Team Learning, work develop and apply solutions together
5. Personal Mastery, committed to gain deep, rich understanding of their work, which will help them to overcome any obstacle.

46. ?
Questions