(MODULE 1)

1.

2.
3.

The classical school of thought began

around 1900 and continued into the
1920s.

Classical viewpoint is divided into three

parts:
Bureaucratic management
Scientific management
Administrative management
PREPARED & PRESENTED BY:
ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

Bureaucratic Management relies on a rational

set of structuring guidelines, such as rules
and procedures, hierarchy, and a clear
division of labor.
Scientific Management focuses on the one
best way to do a job.

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ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

Administrative Management emphasizes the

flow of information in the operation of the
organization.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

Henri Fayol was a French mining engineer who

started his career at the age of 19.

When Fayol became president of his company, it

became a large integrated mining, iron, and steel
organization, which took raw materials and
transformed them into finished products.
Fayols relatively early and extended exposure to
the top management position gave him an
opportunity to reflect on what was required to
manage the total enterprise.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

1.

2.
3.
4.
5.

Fayol identified five major elements of

management which were later called
Functions of Management, i.e.
Planning
Organizing
Command
Coordination
Control

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

1.
2.

3.
4.
5.
6.

Fayol also presented a list of 14

management principles:
Division of work
Authority
Discipline
Unity of Command
Unity of Direction
Subordination of individual interests to the
general interest
PREPARED & PRESENTED BY:
ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

7.

8.
9.
10.
11.

12.
13.
14.

Remuneration
Centralization
Scalar Chain
Order
Equity
Stability of Tenure of Personnel
Initiative
Esprit de Corps

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ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

Division of Work
Specialization increases output by making
employees more efficient.

Authority
Authority must be accompanied by
responsibility.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

Discipline
Employees must obey and respect the rules
that govern the organization. But this is
two-sided: employees will only obey orders
if management provides good leadership.
Unity of Command
An employee should receive orders from
one superior only.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

10

Unity of Direction
The organization should have a single plan
of action to guide managers and workers.
Subordination of Individual Interests to the
General Interest
The interests of any one employee or group
of employees should not take precedence
over the interests of the organization as a
whole.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

11

Remuneration
Workers must be paid a fair wage for their
services.
Centralization
This term refers to the degree to which
subordinates are involved in decision
making.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

12

Scalar Chain
The line of authority from top to bottom of
the organization.

Order
There must be order in both material and
personnel. People and materials should be
in the right place at the right time.

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ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

13

Equity
Managers must be kind and fair to the
employees in order to encourage employee
loyalty and performance.

Stability of Tenure of Personnel

Employees work better if job security and
career progress are assured to them.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

14

Initiative
Employees who are allowed to show
initiative and carry out plans will exert high
levels of efforts.

Esprit de Corps
Promoting team spirit will build harmony
and unity within the organization.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

15

Frederick W. Taylor is known as the Father

of Scientific Management.
Taylors primary goal was to increase
worker efficiency by scientifically designing
jobs.
His basic idea was that there was one best
way to do a job and that this way should be
discovered and put into operation.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

16

Many of Taylors definitive studies were

performed at Bethlehem Steel Company in
Pittsburgh.
In 1911, Taylor published Principles of
Scientific Management in which he
proposed work methods designed to
increase worker productivity.

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ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

17

Taylor became interested in improving

worker productivity early in his career when
he observed inefficiencies during his
contact with steel workers.

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MGT 301
INTRO TO MANAGEMENT

18

a)
b)
c)

d)

Determine the one best way to do each job

through precise, objective measurement.
Select the best persons for the job.
Train the best person in the most
efficient methods of performing the
task(s), i.e. the one best way.
Provide sufficient monetary incentive to
the workers to perform the task correctly
and meet a defined hourly or daily target
of output.
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ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

19

Emphasized the gathering of factual data

concerning jobs and tasks.
Persuaded managers to abandon haphazard
approaches to planning and organizing
work.
Stressed the role of management in
organizing work, training workers, and
introducing incentives.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

20

Too much pressure to perform placed on

the workers.
Unfair division of rewards between
management and labor.
Demands excessive specialization of jobs
and tasks.
Too authoritarian in approach.
Pays insufficient attention to social factors
in the workplace that affect worker
behavior.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

21

Gantt was a young engineering colleague of

Taylor at the end of 1880s.
By early 1900s, Gantt was working as one of
the first bona fide management
consultants.
He became known for developing graphic
methods to aid in organizing and
coordinating multiple tasks in complex
production jobs.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

22

He perfected a type of bar chart that

showed the order in which tasks had to be
initiated and the time allotted for each.
Versions of this graphic display are now
called Gantt Charts.
The importance of Gantts graphic approach
was that it laid stress on systematic
planning.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

23

Max Weber, a well-known German

sociologist, known as the Father of Modern
Sociology, analyzed bureaucracy as the
most logical and rational structure for large
organizations.
Although Max Weber lived at approximately
the same time as did Taylor and Fayol, he
neither influenced them nor was influenced
by them.
PREPARED & PRESENTED BY:
ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

24

Weber never managed an organization, but

was one of historys most perceptive
organizational observers.
Bureaucracies are founded on legal or rational
authority which is based on law, procedures,
rules, and so on.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

25

Rules formal written instructions that

specify actions to be taken under different
circumstances.

Standard Operating Procedures (SOPs)

specific sets of written instructions about
how to perform a certain aspect of a task.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

26

Webers most significant work dealing with

organizations, The Theory of Social and
Economic Organization, although originally
published in 1922 after his death, was not
translated into English until 1947.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

27


1.
2.

3.

Weber described three types of legitimate

authority:
Traditional Authority
Charismatic Authority
Rational-Legal Authority

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ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

28

Traditional Authority -- authority exercised

on the basis of custom or past practice.
According to Weber, its weakness was that it
emphasizes precedent for its own sake rather
than making best possible decisions.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

29

Charismatic Authority -- authority based

on the traits, characteristics and
personality of the person.

The weakness of charismatic authority is

that it does not provide a basis for
succession of authority relationships when
the charismatic leader leaves the scene,
and hence this threatens the continuity of
the organization.
PREPARED & PRESENTED BY:
ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

30

Rational-legal Authority authority

exercised to achieve specifically
designated goals and based on the legal
right of the person in a particular office to
issue commands.
In Webers analysis, this type of authority
is best suited for larger, complex
organizations because it emphasizes
obedience to orders issued by someone
whoever that someone is.
PREPARED & PRESENTED BY:
ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

31

Human relations (or behavioral)

management emerged in the 1920s and
dealt with the human aspects of
organizations.

The ultimate objective of this approach is to

enhance organizational success by building
appropriate relationships with people.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

32

Human relations skill is defined as the

ability to work with people in a way that
enhances organizational success.

The human relations movement has made

some important contributions to the study
and practice of management.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

33

Abraham Maslow, perhaps the best-known

contributor to the human relations
movement, believed that managers must
understand the physiological, safety, social,
esteem and self-actualization needs of
organization members.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

34

The human relations movement began with

the Hawthorne Studies which were
conducted from 1924 to 1933 at the
Hawthorne Plant of the Western Electric
Company in Cicero, Illinois.

Elton Mayo, known as the Father of the

Hawthorne Studies, identified the
Hawthorne Effect or the bias that occurs
when people know that they are being
studied.
PREPARED & PRESENTED BY:
ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

35


1.
2.
3.
4.

There were four major phases to the

Hawthorne Studies:
The illumination experiments
The relay assembly group experiments
The interviewing program
The bank wiring group studies

The intent of these studies was to

determine the effect of working conditions
on productivity.
PREPARED & PRESENTED BY:
ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

36

Human relations school concentrated

particularly on the role of the first-line
supervisor and his interactions with the
subordinates.
The advice was to treat subordinates not as
impersonal cogs in a machine but as
individual human beings with feelings and
emotions, and needs other than just
financial.
PREPARED & PRESENTED BY:
ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

37

Systems approach was applied to

organizations in the late 1960s.
This viewpoint uses systems concepts and
quantitative approaches from mathematics,
statistics, engineering, and other related
fields to solve problems.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

38

A system is an interrelated and

interdependent set of elements functioning
as a whole.

Thus, systems theory in the organizational

context refers to the process involved in
how inputs get transformed by the
organization into outputs.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

39

Organizational inputs are generally

considered to be of three major types:

financial, material and human resources.

These inputs are combined and modified by

technological and managerial actions into
the two major types of organizational
outputs, good and services.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

40

Thus, from this perspective, management

can be viewed as a type of transformation
process, with the managers role being one
of converting a collection of resources into
useful output.
System theory also distinguishes between
closed systems and open systems.

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ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

41

In closed system, there is no interaction of

the elements of the system with the outside
environment, whereas in open system there
is.
Closed systems Are not influenced by and
do not interact with their environment (all
system input and output is internal).

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

42

Therefore, organizations can be considered

open systems that constantly interact with

their environment importing resources
from it into the organization and exporting
goods and services back out into the
outside world.

PREPARED & PRESENTED BY: ALI

RASHID CHEEMA

MGT 301 INTRO TO

MANAGEMENT

43

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

44

PREPARED & PRESENTED BY: ALI

RASHID CHEEMA

MGT 301 INTRO TO

MANAGEMENT

45

The contingency approach to management

emphasizes that what managers do in
practice depends on, or is contingent upon,
a given set of circumstances a situation.
This approach highlights if-then
relationships: If this situational variable
exists, then this is the action a manager
probably would take.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

46

For example, if a manager has a group of

inexperienced subordinates, then the
contingency approach would recommend
that he or she lead in a different fashion
than if the subordinates were experienced.
The contingency approach simply means
that there are no general principles of
management that can be applicable to all
situations.
PREPARED & PRESENTED BY:
ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

47

 Also sometimes called the situational approach.

There is no one universally applicable set of

management principles (rules) by which to manage

organizations.
Organizations are individually different, face
different situations (contingency variables), and
require different ways of managing.

In the mid-1960s, the contingency view of

management or situational approach
emerged.

This approach is based on the premise that

although there is probably no one best way
to solve a management problem in all
organizations, there probably is one best
way to solve any given management
problem in any one organization.
PREPARED & PRESENTED BY:
ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

49


1.

2.
3.

Main challenges of using the contingency

approach are the following:
Perceiving organizational situations as
they actually exist;
Choosing the management tactics best
suited to those situations; and
Completely implementing those tactics.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

50

The contingency approach assumes that

managerial behavior is dependent on a wide
variety of elements.
Thus, it provides a framework for
integrating the knowledge of management
thought.
It has become a popular discussion topic
for contemporary management thinkers.

PREPARED & PRESENTED BY:

ALI RASHID CHEEMA

MGT 301
INTRO TO MANAGEMENT

51