1. Management and Organization
Management and Organization
Management philosophies and organization forms change over time to meet new needs
Some ideas and practices from the past are still relevant and applicable to management today

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
- 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

3. Information
Management has not had a systematically recorded body of knowledge until recently.
Today, vast amounts of relevant information are readily available in print and electronic media.
An Interdisciplinary Field
The manifold increase in management theory information is largely due to its interdisciplinary nature in drawing from several fields (e.g., psychology, mathematics, economics, history, and engineering).

4. Management Perspectives Over Time

5. Classical Perspective:
Rational, scientific approach to management – make organizations efficient operating machines
Scientific Management
Bureaucratic Organizations
Administrative Principles

6. SCIENTIFIC MANAGEMENT
F. W. Taylor—Father of scientific management
Did most of his work at Midvale & Bethlehem Steel Companies in Pennsylvania
Studied on workers employed to load pig iron freight cars

7. The concept of scientific management implies the application of science to management.

8. Separation of planning & doing Time and motion studies Standardization
Key Concepts of Scientific Management
Separation of planning & doing
Time and motion studies
Standardization
Differential piece rate system
Functional foremanship
Scientific selection & training
Economy
Bilateral mental revolution

9. Separation of planning & doing
Before Taylor’s scientific management, the worker himself used to decide how to work and what instruments were necessary. Thus, he planned and did the work also.
Taylor emphasized that planning function should be separate from actual performance and should be given to specialists or managers who should perform it in a scientific way.

10. Time Study
It is a technique which enables the manager to ascertain standard time taken for performing a specified job.
This technique is based on the study of an average worker having reasonable skill and ability.
Taylor maintained that Fair day’s work should be determined through observations, experiment and analysis by keeping in view an average worker.

11. Motion Study
In this study, movement of body and limbs required to perform a job are closely observed.
The purpose of motion study is to eliminate useless motions and determine the best way of doing the job.
Motion study increases the efficiency and productivity of workers by cutting down all wasteful motions.

12.    Functional Foremanship
                                                                            This technique was developed to improve the quality of work as single supervisor may not be an expert in all the aspects of the work.
Therefore workers are to be supervised by specialist foreman.
The scheme of functional foremanship is an extension of principle of specialization at the supervisory level.

14. Standardization
Standardization is a means of achieving economics of production.
It seems to ensure -
The line of product is restricted to predetermined type, form, design, size, weight, quality. etc
There is manufacture of identical parts and components.
Quality & standards have been maintained.
Standard of performance are established for workers at all levels.

15. Differential Piece Wage Plan
This tech of wage payment is based on efficiency of worker.
The efficient workers are paid more wages than inefficient one.
This system is a source of incentive to workers who try improving their efficiency in order to get more wages.
It also encourages inefficient workers to improve their performance and achieve their standards.
It leads to mass production which minimizes cost and maximizes profits.

16. Scientific selection & training: Each worker must be scientifically selected (on the basis of education, experience and aptitude) trained and developed rather than passively leaving them to train themselves.
Economy: While applying scientific management, not only scientific and technical aspects should be considered but consideration should be given to profit and economy. Cost estimates and control techniques should be used.

17. Bilateral mental revolution:
This principle states that there should be cooperation between the management and the workers. For this, a mental change in both parties is necessary. They should move from conflict towards cooperation

18. Evaluation of Taylor
The idea of separating planning from doing has been criticized.
Functional foreman ship meant multiplicity of command. This violates the principle of unity of command.
The concept of mental revolution never materialized.
The concept of time and motion and differential piecework system of wages are based on “economic man” assumption. In reality, man has other needs also, namely, social and psychological.
People do not work individually but are guided by group norms and expectations.

19. General Administrative Theory/The management process school
Henri Fayol

20. Henri Fayol’s Universal Management Process
Fayol published Administration Industrielle et Générale in 1916.
He divided a manager’s job into five functions:
Planning
Organizing
Command
Coordination
Control
He developed 14 universal principles of management.

21. 2-21

22. Humanistic Perspective
Humanistic Perspective
Emphasized understanding human behavior, needs, and attitudes in the workplace
Human Relations Movement
Human Resources Perspective
Behavioral Sciences Approach

23. Human relations School
Hawthorne Studies
Factor that increased output, Human Relations
known as the ‘Hawthorne Studies’ because were conducted at Western Electric’s Hawthorne plant near Chicago

24. Also called neo-classical
By Elton Mayo
revealed the importance of social norms as determinants of individual work behavior
changed the dominant view that employees were no different from any other machines

25. Following experiments were conducted
Illumination experiment:
Proceeded on hypothesis that there was correlation between intensity of illumination and worker’s output. But findings were unexpected..
The production decreased only after light became so dim that they could not see properly.
So, there was no relation between the two variables. Something more than illumination effects productivity.

26. Researchers set up a relay assembly test. Room.
Relay assembly test room experiment:
It depicted the relation between working conditions like incentives, rest, additional physical facilities and production.
Researchers set up a relay assembly test. Room.
Two girls were chosen and they were asked to choose more girls as co-workers.

27. Numerous changes were made.
two 5 minutes rests were introduced.
two 10 minutes rests were introduced.
coffee and snacks were provided.
number of rest periods were increased.

28. cutting an hour off at the end and eliminating Saturday work.
Results implied that increase in productivity is a result of change of girls’ attitudes towards work and their work group.

29. Bank wiring experiments:
Group themselves set the production norms.
The logic were:
Fear of raising the standard.
Protection of slower workers.

30. Also conducted
Mass interview
Personnel counseling
Psychological testing

31. The most important findings of the Hawthorne studies :
Organisation is a social system.
The human factor is the most important element in organisations.
Behavior and sentiments are closely related and the group influences affect individual behavior in a significant way.

32. Group standards are highly effective in establishing individual worker output.
Money is not so important in determining output when compared to group standards, group sentiments and security.
Happy employees are productive workers.

33. Recent Trends Systems Theory Contingency View Total Quality Management
Recent Trends
Systems Theory
Contingency View
Total Quality Management
(TQM)
Learning organization

34. The Systems Approach What Is a System? Systems Approach
A collection of parts operating interdependently to achieve a common purpose
Systems Approach
Shows that the performance of the whole is greater than the sum of the performance of its parts
Seeks to identify all parts of an organized activity and how they interact

35. An interdisciplinary area of study based on the assumptions that everything is part of a larger, interdependent arrangement
Levels of systems
Each system is a subsystem of the system above it.
Identification of systems at various levels helps translate abstract systems theory into more concrete terms.

36. Sub systems within an organization
Goal subsystem(individual & group goals)
technical subsystem(tools, equipment, employee skills, knowledge)
structural subsystem(authority layers & relationships)
Managerial subsystem
psychological subsystem

37. Managers must
coordinate various work activities
ensure that interdependent parts work together
recognize and understand the impact of various external factors decisions and that actions taken in one organizational area will affect other areas and vice versa

38. Systems View of Organizations

39. Lessons from the Systems Approach
Managers now have a greater appreciation for the importance of seeing the whole picture.
Manager should not become preoccupied with one aspect of organizational management while ignoring other internal and external realities.
The systems approach tries to integrate various management theories.

40. Elements of a Learning Organization
Elements of a Learning Organization
Team-Based Structure
Learning Organization
Empowered Employees
Open Information
Exhibit 2.7

41. Current Trends And Issues
Globalization
Workforce Diversity
Entrepreneurship
Managing in an E-Business World
Need for Innovation and Flexibility
Quality Management