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2 Evolution of Management Practices

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2 Evolution of Management Practices

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© © All Rights Reserved
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EVOLUTION OF

MANAGEMENT
PRACTICES
MANAGEMENT
 Management is the attainment of organizational goals in an
effective and efficient manner through planning, organizing,
staffing, directing and controlling organizational resources.
 Organizational resources include men(human beings),
money, machines and materials.
 use of people and other resources to accomplish objectives.
(Louis E Boone & David L Kurtz)
 act of getting things done through people (Mary Parker Follet)
 art of knowing what you want to do in the best and
cheapest way. (Frederick Taylor )
Characteristics
 Management is
- a distinct process.
- an organized activity
- both a science and an art.
- a group activity
 Management principles are universal in
nature
 Management:
- integrates human and other resources.
- aims at the accomplishment of
predetermined objectives.
Concept of management-
Raymond G. Leon
 Management by
- Communication
- Systems
- Results
- Participation
- Motivation
- Exception
- Objectives
FEATURES
 Management involves five functions:
• planning
• organizing
• staffing
• directing
• controlling
 These functions are organised to achieve
organisational goals.
 Management involves effective and efficient
use of resources
PLANNING
• Planning is determining the objectives and
formulating the methods to achieve them. It is
more simply said than done. A job well
planned is half done. During planning one
needs to ask oneself the following:
• What am I trying to accomplish i.e. what is my
objective?
• What resources do I have and do I need to
accomplish the same?
• What are the methods and means to achieve
the objectives?
• Is this the optimal path?
Principles of Planning
 take time to plan
 planning can be top to down or bottom
to top
 involve
and communicate with all those
concerned
 plans must be flexible and dynamic
 evaluate and revise
Steps in Planning
1. Determining the goals or objectives for the
entire organization.
2. Making assumptions on various elements of
the environment.
3. To decide the planning period.
4. Examine alternative courses of actions.
5. Evaluating the alternatives.
6. Real point of decision making
7. To make derivative plans.
Process of Organizing
 Determine what is to be done/ Division of
Work
 Assign Tasks: Departmentalization
 Link Departments: Hierarchy Development
 Decide how much Authority to Designate/
Authority, Responsibility and Delegation
 Decide the Levels at which Decisions are to be
made / Centralization vs. Decentralization
 Decide how to Achieve Coordination
Techniques for achieving
coordination.
 coordination by rules or procedures
 coordination by targets or goals:
 coordination through the hierarchy
 coordination through departmentalization
 using a staff assistant for coordination:
 using a liaison for coordination:
 using a committee for coordination
 using independent integrators for coordination:
 coordination through mutual adjustment:
DIRECTING/LEADING

 Provides positive and dynamic


leadership
 Provides maximum opportunities
 Provides proper motivation of
personnel
 Ability to command people
CONTROLLING CONCEPTS
 Feed Forward Control-Control that
attempts to identify and prevent deviations
before they occur is called feed forward
control, sometimes called preliminary or
preventive control.
 Concurrent Control-Control that monitors
ongoing employee activities during their
progress, to ensure they are consistent with
quality standards, is called concurrent
control.
 Feedback Control-In this case, the control
takes place after the action. Sometimes
called post-action or output control
Steps in the Control
Process
 establish standards of performance
 measure actual performance
 compare performance to standards:
 take corrective action
MANAGERIAL SKILLS

CONCEPTUAL

HUMAN

TECHNI
CAL
TECHNICAL SKILLS

A persons’ knowledge and ability to


make effective use of any process or
technique constitutes his technical
skills.
For eg: Engineer, accountant, data
entry operator, lawyer, doctor etc.
HUMAN SKILLS

An individuals’ ability to cooperate with


other members of the organization
and work effectively in teams.
For eg: Interpersonal relationships,
solving people’s problem and
acceptance of other employees.
CONCEPTUAL SKILLS

Ability of an individual to analyze


complex situations and to rationally
process and interpret available
information.
For eg: Idea generation and analytical
process of information.
MANAGER’S ROLES

 Interpersonal role
 Informational role
 Decisional role
INTERPERSONAL ROLE

 Figurehead- ethical guidelines and


the principles of behavior employees
are to follow in their dealings with
customers and suppliers
 Leader- give direct commands and
orders to subordinates and make
decisions
 Liaison-coordinate between different
departments and establish alliances
between different organizations
INFORMATIONAL ROLE

 Monitor- evaluate the performance of


managers in different functions
 Disseminator-communicate to
employees the organization’s vision
and purpose
 Spokesperson- give a speech to
inform the local community about the
organization’s future intentions
DECISIONAL ROLE

 Entrepreneur- commit organization


resources to develop innovative goods
and services
 Disturbance handler- to take corrective
action to deal with unexpected problems
facing the organization from the external
as well as internal environment
 Resource allocator- allocate existing
resources among different functions and
departments
 Negotiator- work with suppliers,
distributors and labor unions
TYPES OF MANAGERS

 FIRST-LINE MANAGERS- often called


supervisors stand at the base of the
managerial hierarchy
 MIDDLE MANAGERS- heads of various
departments and organise human
and other resources to achieve
organizational goals
 TOP MANAGERS- set organizational
goals, strategies to implement them
and make decisions
WHAT MAKE MANAGERS
SUCCESSFUL?
 Hard work
 Smart work
 Patience
 Out of box thinking
 Reading and acquiring knowledge
 Ethical consciousness
 Collaborative relationship
 Perseverance
1. Classical Management Approaches
1. Scientific management
2. Administrative principles
3. Bureaucratic organization

2. Behavioral Management Approaches


1. Follett’s organizations as communities
2. The Hawthorne studies
3. Maslow’s theory of human needs
4. McGregor’s Theory X and Theory Y
5. Argyris’s theory of adult personality
3. Modern Management Foundations
1. Quantitative analysis and tools
2. Organization as systems
3. Contingency thinking
4. Quality management
5. Knowledge management and organizational learning
6. Evidence-based management
The Evolution of Management
Theory
Major branches in the classical approach to
management
Classical Management Approaches

 Practical
lessons from scientific
management
 Make results-based compensation a performance
incentive
 Carefully design jobs with efficient work methods
 Carefullyselect workers with the abilities to do
these jobs
 Train workers to perform jobs to the best of their
abilities
 Trainsupervisors to support workers so they can
perform jobs to the best of their abilities
Classical Management Approaches

 Administrative principles (Henri Fayol) — rules/duties of


management:
Classical Management Approaches

 Administrative principles (Henri Fayol)


 Scalar chain
 thereshould be a clear and unbroken line of
communication from the top to the bottom of
the organization
 Unity of command: each person should receive
orders from only one boss
 Unity of direction: one person should be in charge
of all activities with the same performance
objective
Classical Management Approaches

 Bureaucratic organization (Max Weber)


 Bureaucracy

An ideal, intentionally rational, and very


efficient form of organization
Based on principles of logic, order, and
legitimate authority
Foundations in the behavioral or human
resource approaches to management
Behavioral Management Approaches

 Organizations as communities
– Mary Parker Follett
 Groups and human cooperation:
Groups allow individuals to combine
their talents for a greater good
Organizationsare cooperating
“communities” of managers and
workers
Manager’s job is to help people
cooperate and achieve an integration
of interests
Behavioral
 Organizations asManagement Approaches
communities
 Forward-looking management insights:
 Behavioral Management Approaches
Hawthorne studies
 Initial study examined how economic incentives and physical
conditions affected worker output
 No consistent relationship found
 “Psychological factors” influenced results
 Social setting and human relations
 Manipulated physical work conditions to assess impact on
output
 Designed to minimize the “psychological factors” of
previous experiment
 Mayo and colleagues concluded: New “social setting” led
workers to do good job
 Good “human relations” = higher productivity
 Employee attitudes and group processes
 Some things satisfied some workers but not others
 People restricted output to adhere to group norms
 Lessons from the Hawthorne Studies:
 Social and human concerns are keys to productivity
 Hawthorne effect — people who are singled out for special
attention perform as expected
Behavioral Management Approaches

 Maslow’s theory of human needs


A need is a physiological or
psychological deficiency a person feels
compelled to satisfy
 Need levels:
Physiological
Safety
Social
Esteem
Self-actualization
Maslow’s hierarchy of human needs
Behavioral Management Approaches
 Maslow’s theory of human needs
 Deficit principle
A satisfied need is not a motivator of
behavior
 Progression principle
A need becomes a motivator once the
preceding lower-level need is satisfied
 Both principles cease to operate at self-
actualization level
Behavioral Management Approaches
 McGregor’s Theory X assumes that workers:
 Dislike work
 Lack ambition
 Are irresponsible
 Resist change
 Prefer to be led
• McGregor’s Theory Y assumes that workers
are:
 Willing to work
 Capable of self control
 Willing to accept responsibility
 Imaginative and creative
 Capable of self-direction
Theory
Theory XX versus
versus Theory
Theory YY
(Douglas
(Douglas McGregor)
McGregor)
Behavioral Management Approaches

 Implications of Theory X and Theory Y:


 Managers create self-fulfilling prophecies
 Theory X managers create situations where
workers become dependent and reluctant
 Theory Y managers create situations where
workers respond with initiative and high
performance
Central to notions of empowerment and
self-management
Behavioral Management Approaches

 Argyris’s theory of adult personality


 Classical management principles and
practices inhibit worker maturation and are
inconsistent with the mature adult personality
 Psychological success occurs when people
define own goals
 Management practices should accommodate
the mature personality by:
Increasing task responsibility
Increasing task variety
Using participative decision making
Modern Management Foundations

 Foundations for continuing developments in management


Modern Management Foundations
Management science or operations research
Organizations as complex networks of interacting
subsystems
 Quality management
 Managers and workers in progressive
organizations are quality conscious
 Quality and competitive advantage are linked
 Total quality management (TQM)
 Comprehensive approach to continuous quality
improvement for a total organization
 Creates context for the value chain
 Continuous improvement
 Continual search for new ways to improve
quality
 Something always can and should be improved
 ISO certification
 Global quality benchmark
 Refineand upgrade quality to meet ISO
standards
Modern Management Foundations

 Knowledge Management and Organizational


Learning
 Knowledge management is the process of
using intellectual capital for competitive
advantage
 Portfolio of intellectual assets include patents,
intellectual property rights, trade secrets, and
accumulated knowledge of the entire
workforce
Modern Management Foundations

 Learning organizations
 Organizationsthat are able to continually
learn and adapt to new circumstances
 Core ingredients include:
Modern Management Foundations

 Evidence-Based Management: Making


management decisions on “hard facts” about
what really works
 Evidence-Based Positive Human Resource
Management Practices
 Employment security
 Selective hiring
 Self-managing teams
 High pay based on merit
 Training and development
 Reduced status distinctions
 Shared information

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