Management

1. Management Business Management

2. Unit Objectives Analyze the history of management 1 Define Management 2 3 Analyze different levels of management 4 Determine the skills of a manager 5 Identify the functions of a manager

3. History of Management

4. 1880 Scientific Management1929 Taylorism • Frederick Taylor decides to time each and every worker at the Midvale Steel Company. His view of the future becomes highly accurate: • "In the past man was first. In the future the system will be first." • In scientific management the managers were elevated while the workers' roles were negated. • "Science, not rule of thumb," said Taylor. • The decisions of supervisors, based upon experience and intuition, were no longer important. Employees were not allowed to have ideas of responsibility.

5. FREDERICK WINSLOW TAYLOR (1856-1915) FRANK GILBERTH (1868-1924) & LILLIAN GILBERTH(1878-1972) MAJOR CONTRIBUTORS

7. SCIENTIFIC MANAGEMENT

8. FRANK B GILBRETH & LILLIAN M GILBRETH Followers of Taylor

11. Criticism

12. 1932 Hawthorne studies • Between 1924 and 1933, research teams from Harvard University conducted field studies on worker productivity at the Western Electric Hawthorne plant near Chicago • The experiments initially concentrated on the relationship between productivity and work place lighting. To the researchers' surprise, both more and less light created higher productivity levels. • Sociologist Mayo joined the experiments in early 1928 and realized that the workers chosen for the experiment were accorded higher status by their co-workers. The increased performance was due to their increased motivation.

13. Henry Gantt • Worked with Taylor on the Scientific Management method-create Gantt Chart

14. Henri Fayol(1841-1925) • Henri Fayol • Father of Organizational Development

15. Fayol:-French mining engineer and a management theorist.-Started as an engineer at a mining company and became Director in 1888.- Viewed management as a profession that can be trained and developed.-First one to analyze the functions of management.

16. (B) Fayol described management as a scientific process built up of five immutable elements: Planning, Organizing, Commanding, Coordinating, Controlling

17. (C) Fayol’s Principles • Henri Fayol, developed a set of 14 principles: 1. Division of Work:allows for job specialization. 2. Authority and Responsibility:Fayol included both formal and informal authority resulting from special expertise. 3.Discipline:obedient, applied, respectful employees needed 4. Unity of Command:Employees should have only one boss. 5. Unity of Direction:One plan of action to guide the organization 6. Subordination of individual interest:The organization takes precedence over the individual

18. Fayol’s Principles 7. Remuneration of Personnel:The payment system contributes to success. 8. The Degree of Centralization:the degree to which authority rests at the very top. Balance of authority among levels of management. 9. Scalar Chain or Line of Authority:a clear chain from top to bottom of the firm 10.Order:Each employee is put where they have the most value.

19. Fayol’s Principles 11. Equity:Management treats all employees fairly in justice and respect. 12. Stability of Tenure:Long-term employment is important. 13. Initiative:Encourage innovation. 14. Esprit de corps: ‘Union is strength’-refers to harmony & mutual understanding among the members of an organization. Team spirit!

20. Maslow’s Hierarchy of Needs

21. Organizational Development • Henri Fayol contributed to this movement by developing the 14 management principles and management functions. • These principals are still used today

22. SCIENTIFIC MANAGEMENT THEORY FREDERICK W.TAYLOR (1856-1915) - FATHER OF SCIENTIFIC MANAGEMENT ANALYSED MANAGEMENT SCIENTIFICALLY TO FIND OUT THE MOST EFFECTIVE WAY TO DO A JOB - “ONE BEST WAY” TO DO THE JOB. GENERAL ADMINSTRATIVE MANAGEMENT THEORY HENRI FAYOL (1841- 1925) - FATHER OF MODERN MANAGEMENT ANALYSED MANAGEMENT AS A UNIVERSAL PROCESS OF PLANNING,ORGANIZING, COMMANDING,COORDINATING& CONTROLLING. ALSO INTRODUCED FOURTEEN PRINCIPLES OF MANAGEMENT. CLASSICAL APPROACH

23. Taylor Vs. Fayol • Taylor’s viewed management from the bottom up • Increasing productivity of the individual worker • Fayol viewed management from the top down • Creating guidelines for managing complex organizations

24. The average human being has an inherent dislike of work and will avoid it if he can.” The average human being does not inherently dislike work…

25. BPM • The phrase Business Process Management (BPM) refers to a set of activities an organization implements to optimize its processes. • Business process management also encompasses software tools designed to assist firms in achieving process optimization. • Thanks to BPM's purpose in linking human activities with disparate technology systems, BPM is proving a dynamic solution to some of the most challenging process problems in business. Business process management also revolutionizing the way companies operate by boosting their efficiencies and capacities to adapt.

26. What is Management? • Management is the process of accomplishing the goals of an organization through the effective use of people and other resources.

27. Managerial Levels

28. Five Key Managerial Skills

29. First Line Management Technical skills are most important for first line employees

30. Top Management Conceptual skills, setting the strategic direction of the organization are most important to top management

31. Resources used by Managers

32. Types of Managers • Functional Managers- supervise the work of employees engaged in specialized activities, such as accounting, sales or information systems • General Managers- responsible for the work of several different groups that perform a variety of functions.

33. Functions of a Manager • Planning • Organizing • Leading • Controlling