MANAGEMENT YESTERDAY AND TODAY

A K Mathur
MBA, M.Com., PGDM, PGDHRM, PhD

Management exist for thousands of years

The construction of a single Pyramid required 1lack workers for 20 years. The earliest known Egyptian pyramids are found at Saqqara, northwest of Memphis. The earliest among these is the Pyramid of Djoser (constructed 2630 BCE2611 BCE) which was built during the third dynasty. This pyramid and its surrounding complex were designed by the architect Imhotep, and are generally considered to be the world's oldest monumental structures constructed of dressed masonry
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Construction of Taj Mahal required 20,000 Workers and 22 years

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Construction of Great wall of China required 3 lack soldiers and 5 lack civil workers

Story of blind men and elephant

It is a wall It is a Snake It is a fan It is a spear It is a tree It is a rope

Each encountering the same elephant but have a different opinion. what each observes depends on where he stands.
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Six approaches to management

Each approach is concerned with the same animal. The differences reflect the background and interest of writer. Each of the approaches are correct and contributes to our overall understanding of Management. How ever each is also limited view of larger animal.

Development of Major Management theories

Management Theories

Historical Background Adam Smith Division of Labour Industrial revolution

Scientific Management F W Taylor Frank and Lillian Gilbreth

General Administrative theorists Henri Fayol POSLC 14 principles of mgnt. Max Weber Bureaucracy

Quantitative approach Mathematical and statistical solutions to the military problems

Organization al Behaviour

System Approach Input Transformati on- Output

Contingency Approach If - Then

Early Advocates
Early examples of Management

Hawthorne studies

Adam Smith Industrial Revolution

Historical Background of Management

Adam Smith(1776)
Argued for division of labour The economic advantage one can gain through job specialization dividing work into small units of repetitive tasks.

Industrial revolution(18th century)

Started in Great Britain in 18th century Substituted human labor by machines Less cost more production Created large organizations which required skilled Managers

I - Scientific Management
Frederick Winslow Taylor- He was a Mechanical Engineer
and worked at Bethlehem steel companies in Pennsylvania, US.

The father of scientific management. Published principles of management in 1911. He was appalled/Shocked to see workers inefficiency, they used different techniques to do same job, there was no work standard. Workers were placed on job which did not matched their ability and aptitudes. Using scientific methods to define the one best way for a job to be done:

Putting the right person on the job with the correct tools and equipment.
Having a standardized method of doing the job. Providing an economic incentive to the worker.
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Taylors Four Principle Of Management

1.

Develop a science for each element of an individuals work, which will replace the old rule-of-thumb method.

2.

Scientifically select and then train, teach, and develop the worker.
Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.

3.

4.

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Time motion studies:

Pig Iron Experiment:

Workers were suppose to move 12 ton of pig iron on rail cars per day. Motivated for moving 47 ton pig iron. Right person with correct technique and tool, follow the instruction, and motivated with economic incentive 1/8th of the workers did this by the end of the day.

The science of shoveling:

A worker can lift 21 pounds at one time. The shovel should be sized so that it would hold 21 pounds of the substance to be shoveled. Company provided optimum shovels. Result was 3-4 fold increase in productivity.
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Contd..

Frank(Construction contractor) and his wife Lillian Gilbreth (Psychologist)

Influenced by Taylor Eliminating wasteful hand-body motion Bricklaying Focused on increasing worker productivity through the reduction of wasteful hand-body motion. Reduced number of motions in interior and exterior bricklaying (basic 17 hand motions search, hold, pick,.. called as Therblig) He was first to use motion pictures to study hand-body motion using Microchronometer.

How Do Todays Managers Use Scientific Management? Use time and motion studies to increase productivity. Hire the best qualified employees. Design incentive systems based on output.

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II - General Administrative Theorists

These group of writers developed more general theories of what managers do What constituted good management practice. They focused on entire organization.

Henri Fayol (Managing Director of large French mining firm)

He wrote from his personal experience and concentrated on all managers not on first line Managers like Taylor. Believed that the practice of management was distinct from other organizational functions like accounting, distribution, production He developed 14 principles of management that applied to all organizational situations.

Max Weber (German sociologist)

Developed a theory of authority structures and relations based on an ideal type of organization (bureaucracy), characterized by division of labor, hierarchy, rules and regulations, and impersonal relationship.

Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism.

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Fayols 14 Principle of Management

1. 2. 3.

Division of work - Specialization increases output. Authority Must be able to give orders Discipline Everyone should respect and obey rules

4.
5. 6. 7.

Unity of command Receive order only from one

Unity of direction Single plan of action to guide managers and workers Subordination of individual interest to the interests of the organization Remuneration Fair wages for services

8.
9. 10. 11. 12. 13. 14.

Centralization Degree to which subordinates are involved in decision making

Scalar chain The line of authority from top management to lowest ranks Order People and material should be in right place and time Equity - Managers should be kind and fair Stability of tenure of personnel Orderly personnel planning Initiative Employees should be facilitated to originate and carry out plans Esprit de corps Promoting team spirit will build harmony and unity
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Webers Ideal Bureaucracy

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III - Quantitative Approach to Management

It evolved from the development of mathematical and statistical solutions to military problems during world war II.

One group of Military officers nicknamed Whiz Kids joined ford motor company in mid 1940 and used statistical methods and quantitative models to improve decision making.

Two of them were Robert McNamara who became president of Ford then US Secretary of defense and then Head of World Bank.

Charles Tex Thornton founded Litton Industries.

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Quantitative Approach
Also called operations research or management science. Focuses on improving managerial decision making, Planning and control by applying: Statistics, optimization models, information models, and computer simulations Linear Programming - Improve resource allocation decision

Critical Path method Work Schedule Economic Order Quantity Optimum inventory levels

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IV - Understanding Organizational Behaviour

Organizational Behavior (OB)

The study of the actions/behaviours of people at work; people are the most important asset of an organization

Early OB Advocates
Robert Owen Hugo Munsterberg

Mary Parker Follett

Chester Barnard

Their contribution were varied and distinct yet they all believed that people were the most important assets and should be managed accordingly.

Their ideas provided the foundation for such management practices as employee selection procedures, motivation programs, work teams, organization environment management etc.
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Advocates of Organizational Behaviour

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Hawthorne studies

19241927- Western electric company works Effect of various illuminations on workers output. Control and Experimental group. 1927-1932- Elton Mayo- Harvard professor Experiments Changes in workdays, week lengths, rest period, individual v/s group wage plan. Results were that Incentive plan has less effect than peer pressure, acceptance by the group, security.Social norms and group standards matters more. These studies stimulated an interest in human behavior.
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V - The Systems Approach - 1960

System
System is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

Basic Types of Systems

Closed systems
Are not influenced by and do not interact with their environment.

Open systems
Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.

The system approach means Manager has to coordinate the work activities of the various parts of the organization and ensure that all the interdependent parts of the organization are working together to achieve organization's goals.

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Organisation as an open system

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VI - Contingency/Situational Approach
There is no one universally applicable set of management principles by which one can manage organizations. Organizations are individually different, face different situations (contingency variables), and require different ways of managing. Method of management will depend upon what is the situation . This what variable needs to be defined:
Organization size Problem of coordination with increasing size Routine-ness of task technology As oppose to dynamic Environmental uncertainty stable predictable environment v/s rapidly changing and unpredictable environment Individual differences Desire of growth, autonomy, tolerance, expectations, these differences are important when Manager design jobs, motivation techniques.

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Current Trends and Issues

1.

Globalization World has become a global village. Working with people from different countries. Movement of jobs to low cost labour. Has it made countries more vulnerable to conflicts over political and cultural differences.

2.

Ethics Managers keeping self interest ahead of those affected by their decisions
Misrepresentation and Financial manipulation, Selling shares at peak,

3.

Workforce diversity Heterogeneous in terms of Gender, race, ethnicity, age, life style. Melting pot approach v/s recognition and celebration of differences.
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Globalization - example
If you look at the tag on your shirt, chances are you would see that it was made in a country other than the one in which you sit right now. What's more, before it reached your wardrobe, this shirt could have very well been made with Chinese cotton sewed by Thai hands, shipped across the Pacific on a French freighter crewed by Spaniards to a Los Angeles harbor. This international exchange is just one example of globalization, a process that has everything to do with geography.
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Current trends and issues

4.

Entrepreneurship Discovery of opportunities and

resources to exploit them. 3 Themes Pursuing opportunities, innovations, and growth.

5.

E-Business 3 types.
E-business enhanced - Which enhance sales along with traditional ways of doing business. Fortune 500 organizations. E- business enabled - Which uses internet to perform traditional business better and not to sell anything. Levis Strauss. Total E- business organizations - Which do the business through internet. Google, Yahoo, amazon.com, eBay,

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Current trends and issues

6. Learning Organization: Adapt change,
accept creative ideas, everyone should innovate, ability to learn, managers should enable others.

7. Knowledge Management: It involves

cultivating a learning culture, systematic gathering of knowledge, and share to get best results.

8. Quality Management: Focus on customer,

continuous improvement, process focused, measure everything and empower employee.
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Questions

What are six management theories? Describe one of them with suitable examples. Short note:
Globalisation E-business

a)Adam smith published Wealth of nation in

1.1776, 2. 1876, 3. 1936, 4 1676

b) Taylor was a 1. Engineer, 2. Doctor, 3.Police, 4.Psychologist c) Frank and Lillian Gilbreth were Husband and wife, 2. Cousin sisters, 3.Cousin brother,4. brother and sister D)Henry Fayol developed
1. 1. 12 Priniciples, 2. 13 Principles, 3.14 Principles, 4.15 Principles others in organisation to achieve better results.

E) Knowledge management means systematically gathering knowledge and share it with

1. True , 2. Flase
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THANKS
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Activity

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