MANAGING: HISTORY AND

CURRENT THINKING
2nd Lecture
By Hareem Siddiqui
 This chapter will help to acquire understanding of:

How management started

Classical management
Modern management
Elements of management common in all ages
Adapting management styles according to situation
Understanding org as a system
Contemporary approach to management

OBJECTIVES OF THE
CHAPTER 2
HISTORICAL BACKGROUND OF MANAGEMENT
 EVOLUTION OF MANAGEMENT

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HISTORICAL BACKGROUND OF MANAGEMENT
EVOLUTION OF MANAGEMENT
THEORY 4
HISTORICAL BACKGROUND OF MANAGEMENT
 Adam Smith (1776)

Breakdown of jobs into narrow and repetitive tasks.

DIVISION OF LABOR 5
HISTORICAL BACKGROUND OF MANAGEMENT
 Started in the pre-twentieth century(18th century).

The advent of machine power,

mass production and
efficient transportation.

INDUSTRIAL REVOLUTION 6
HISTORICAL BACKGROUND OF MANAGEMENT
 Skilled labor requirement
Favorism
Nepotism
More wastage
Lack of management
Remuneration

PROBLEMS 7
HISTORICAL BACKGROUND OF MANAGEMENT
 SCIENTIFIC APPROACH TO
MANAGEMENT

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HISTORICAL BACKGROUND OF MANAGEMENT
 One best way for a job to be done.
The systematic study of relationships between people and
tasks for the purpose of
redesigning the work process
to increase efficiency.

SCIENTIFIC MANAGEMENT 9
HISTORICAL BACKGROUND OF MANAGEMENT
 Study the way workers perform their tasks, gather all the informal job
knowledge that workers possess, and experiment with ways of improving how
tasks are performed.

Codify the new methods of performing tasks into written rules and standard
operating procedures.

Carefully select workers who possess skills and abilities that match the needs
of the task, and train them to perform the task according to the established rules
and procedures.

Establish a fair or acceptable level of performance for a task, and then develop
a pay system that rewards performance above the acceptable level.

TAYLORS PRINCIPLES OF
MANAGEMENT 10
HISTORICAL BACKGROUND OF MANAGEMENT
 Hiring the best qualified employees.

Time and motion study to eliminate wasted motions.

Designing incentive systems based on outputs.

HOW DO TODAYS MANAGERS USE

SCIENTIFIC MANAGEMENT? 11
HISTORICAL BACKGROUND OF MANAGEMENT
 ADMINISTRATIVE APPROACH
TO MANAGEMENT

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HISTORICAL BACKGROUND OF MANAGEMENT
 The study of how to create an organizational structure
and control system that leads to high efficiency and
effectiveness.

ADMINISTRATIVE
MANAGEMENT 13
HISTORICAL BACKGROUND OF MANAGEMENT
 Max Weber

THEORY OF BUREAUCRACY 14
HISTORICAL BACKGROUND OF MANAGEMENT
 Division of work Remuneration
Authority and Centralization
responsibility Scalar chain
Discipline Order
Unity of command Equity
Unity of direction Stability
Subordination of the Initiative
individual interest to the Espirit de corps (team spirit)
general interest

FAYOLS PRINCIPLES 15
HISTORICAL BACKGROUND OF MANAGEMENT
 Fayols 14 principles serve as a frame of reference for
current management practices.

Proposed the four Managerial Functions.

Structures of organizations are still designed on this

basis.

HOW DO TODAYS MANAGERS

USE THIS APPROACH? 16
HISTORICAL BACKGROUND OF MANAGEMENT
 BEHAVIORAL APPROACH TO
MANAGEMENT

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HISTORICAL BACKGROUND OF MANAGEMENT
 Emphasize on increasing production through an
understanding of people.

The Hawthorne Studies

Human Relations Movement

BEHAVIORAL APPROACH TO
MANAGEMENT 18
HISTORICAL BACKGROUND OF MANAGEMENT
 Series of experiments conducted at Hawthorne plant of
Western Electric between 1927 and 1932.
Illumination exp: relationship b/w light and productivity
Economic incentive exp: relationship b/w economic
incentive and productivity.
Rest exp: relationship b/w no. of breaks and productivity.

THE HAWTHORNE STUDIES 19

HISTORICAL BACKGROUND OF MANAGEMENT
 Human variable impacts productivity.

Social norms are more important for people than

economic incentives.

RESULTS OF HAWTHORNE
EXP 20
HISTORICAL BACKGROUND OF MANAGEMENT
 People oriented approach to management.

Interaction of people in org VS Organizational success.

Major Contributors:
Abraham Maslow
Douglas McGregor

HUMAN RELATIONS
MOVEMENT 21
HISTORICAL BACKGROUND OF MANAGEMENT
THEORY X AND THEORY Y 22
HISTORICAL BACKGROUND OF MANAGEMENT
 It influences
Decision making
Communication
Org structure
Control systems
Leadership
Group behavior
Motivation

HOW DO TODAYS MANAGERS

USE BEHAVIORAL APPROACH 23
HISTORICAL BACKGROUND OF MANAGEMENT
 MANAGEMENT SCIENCE APPROACH

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HISTORICAL BACKGROUND OF MANAGEMENT
 Suggests that managers can best improve their organizations
by using the scientific method and mathematical techniques to
solve org problems.

Use of computers and internet in the workplace.

Quantitative Management
Total Quality Management
Operations Management
Management Information System

MANAGEMENT SCIENCE
APPROACH 25
HISTORICAL BACKGROUND OF MANAGEMENT
 ORGANIZATIONAL ENVIRONMENT
THEORY

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HISTORICAL BACKGROUND OF MANAGEMENT
 The set of forces and conditions that operate beyond an
organizations boundaries but affect a managers ability
to acquire and utilize resources.

ORGANIZATIONAL
ENVIRONMENT 27
HISTORICAL BACKGROUND OF MANAGEMENT
 Views organization as a System

System is a set of interrelated and interdependent parts

arranged in a manner that produces a unified whole.

Open System A system that takes in resources from its

external environment and converts them into goods
and services that are then sent back to that environment
for purchase by customers.

THE OPEN SYSTEMS VIEW 28

HISTORICAL BACKGROUND OF MANAGEMENT
ORGANIZATION AS AN OPEN
SYSTEM 29
HISTORICAL BACKGROUND OF MANAGEMENT
 Emphasizes what managers do depends on a Situation.

Different organizations face different challenges, so

management styles should also be different.

CONTINGENCY APPROACH 30
HISTORICAL BACKGROUND OF MANAGEMENT
CONTINGENCY APPROACH 31
HISTORICAL BACKGROUND OF MANAGEMENT
 Organization size
Routineness of task technology
Environmental uncertainty
Individual differences

POPULAR CONTINGENCY
VARIABLES 32
HISTORICAL BACKGROUND OF MANAGEMENT