MANAGEMENT: SCIENCE,

THEORY, AND PRACTICE Chapter 1

 DEFINITION OF
MANAGEMENT: ITS
NATURE AND PURPOSE

• The process of designing and maintaining

an environment in which individuals,
working together in groups, efficiently
accomplish selected aims.
 Five managerial functions:

The
Functions • Planning
of • Organizing
Manageme • Staffing
nt • Leading
• Controlling
Managerial Functions at
Different
Organizational Levels
Managerial Skills and the Organizational
Hierarchy
 The Goals of All Managers
and Organizations
• The aim of all managers should be to create
a surplus by establishing an environment in
which people can accomplish group goals with
the least amount of time, money, materials, and
personal dissatisfaction.
Characteristics of Excellent and Most
Admired Companies (Thomas Peters and
Robert Waterman)
These firms
1. were oriented toward action
2. learned about the needs of their customers
3. promoted managerial autonomy and entrepreneurship
4. achieved productivity by paying close attention to the needs of their people
5. were driven by a company philosophy often based on the values of their
leaders
6. focused on the business they knew best
7. had a simple organization structure with a lean staff
8. were centralized as well as decentralized, depending on appropriateness
Adapting to Changes in
The 21st Century

TECHNOLOGY GLOBALIZATIO INNOVATION

N AND
ENTREPRENEU
RSHIP
Productivity,
Effectiveness, and
Efficiency
•Productivity
The output–input ratio within a time period
with due
consideration for Quality.

•Effectiveness
The achievement of objectives.

•Efficiency
The achievement of the ends with the least
amount of resources.
Managing: Science Or Art?

Managing as practice is an art; the organized

knowledge underlying the practice is a science.
EMERGENCE OF MANAGEMENT
THOUGHT Scientific Management
Frederick W. Taylor • Frederick W. Taylor was the first man who deemed work
• Father of Scientific deserving of systematic observation and study
Management
• Four principles of Scientific Management

Henry L. Gantt • In 1887 he joined Frederick W. Taylor in applying scientific

management principles to the work at Midvale
Steel and Bethlehem Steel.

• Developed the Gantt Chart and emphasized the need for

training.

Frank and Lillian Frank is known primarily for his time and motion studies, whereas Lilian is
Gilbreth known for human aspects of work and understanding workers’ personalities
and needs.
F W TAYLOR- SCIENTIFIC
MANAGEMENT
Taylor's scientific management consisted of four principles:
•Replace rule-of-thumb work methods with methods based on a scientific study of the
tasks.
•Scientifically select, train, and develop each employee rather than passively leaving
them to train themselves.
•Provide "Detailed instruction and supervision of each worker in the performance of
that worker's discrete task"
•Divide work nearly equally between managers and workers, so that the managers
apply scientific management principles to planning the work and the workers
actually perform the tasks.
HENRY L. GANTT
•Gantt created many different types of charts. He designed his charts so foremen or
other supervisors could quickly know whether production was on schedule, ahead of
schedule, or behind schedule.

Gantt (1903) describes two types of balances:

•the "man’s record", which shows what each worker should do and did do, and
•the "daily balance of work", which shows the amount of work to be done and the amount that
is done.

• He designed the ‘task and bonus’ system of wage payment and additional measurement
methods for worker efficiency and productivity.
GANTT CHART
FRANK AND LILLIAN
GILBRETH
• Frank is known primarily for his time and motion studies, whereas Lilian is known for
human aspects of work and understanding workers’ personalities and needs.

•He had been watching how bricklayers laid bricks, observing as many as 18 independent
movements. By deploying unskilled laborers, Gilbreth radically reduced the number of
motions and increased bricklaying rates from 1,000 per hour, to 2,700. It is the same
principle that means surgeons no longer riffle through a tray to find the implement they need:
now nurses find and pass the instruments.

•The work of the Gilbreths is often associated with that of Frederick W Taylor, yet there was
a substantial philosophical difference between the Gilbreths and Taylor. The symbol of
Taylorism was the stopwatch; Taylor was concerned primarily with reducing process
times. The Gilbreths, in contrast, sought to make processes more efficient by reducing
the motions involved. They saw their approach as more concerned with workers' welfare
than Taylorism, which workers themselves often perceived as concerned mainly with profit.
•In conducting their Motion Study method to work, they found that the key to improving work
efficiency was in reducing unnecessary motions. Not only were some motions unnecessary, but
they caused employee fatigue. Their efforts to reduce fatigue included reduced motions, tool
redesign, parts placement, and bench and seating height, for which they began to develop workplace
standards. The Gilbreths' work broke ground for a contemporary understanding of ergonomics.

•His maxim of “I will always choose a lazy person to do a difficult job, because a lazy person will
find an easy way to do it” is still commonly used today, although it is often misattributed to Bill
Gates, who merely repeated the quote but did not originate it.
MODERN OPERATIONAL
MANAGEMENT THEORY
Henry Fayol
•Father of Modern Management
•Recognized the need for teaching management.
•Formulated 14 principles of management
Fayol divided the range of activities undertaken within an industrial undertaking into six types:-
• technical activities
• commercial activities
• financial activities
• security activities
• accounting activities, and
• managerial activities
1.Division of work
2.Authority and responsibility
3.Unity of command
4.Unity of direction
5.Equity
6.Order
7.Discipline
8.Initiative
9.Remuneration
10.Stability
11.Scalar chain
12.Subordination of individual interest
13.Espirit de corps
14.Centralization and decentralization
BEHAVIORAL SCIENCES
Hugo He believes in 3 points of view that are of particular importance to industrial
Munsterber psychology and seeks to answer those questions. A) "how we can find the
g men whose mental qualities make them best fitted for the work
which they have to do
(Application B)under what psychological conditions we can secure the greatest and
of most satisfactory output of work from every man?
Psychology C) finally, how we can produce most completely the influences on human
to industry minds which are desired in the interest of the business." In other words, we
and ask how to find "the best possible man, how to produce the best
managemen possible work, and how to secure the best possible effects
t)
Walter Dill Scott developed laws of suggestibility as a critical mechanism of advertising. He
Scott argued that consumers don't act rationally and therefore can be easily influenced.
According to Scott, consumer suggestibility was based on three
factors: emotion, sympathy, and sentimentality.
He believed that advertising was primarily a persuasive tool rather than an
informational device and that advertising had its effect on consumers in a nearly
hypnotic manner.
Vilfredo Pareto • Referred as the father of social systems approach to
organization and management.

• Pareto Principle/ Analysis

Max Weber • A rigid division of labor is established that clearly identifies regular
(Theory of tasks and duties of the particular bureaucratic system.
bureaucracy)
• Regulations describe firmly established chains of command and the
duties and capacity to coerce others to comply.

• Hiring people with particular, certified qualifications supports regular

and continuous execution of the assigned duties.

Elton Mayo and F.J. Hawthorne studies

Roethlisberger
MAX WEBER-THEORY OF
BUREAUCRACY
Weber would explain bureaucracy through nine main characteristics/principles:
1.Specialized role
2.Recruitment based on merit (e.g. tested through open competition)
3.Uniform principles of placement, promotion, and transfer in an administrative system
4.Careerism with a systematic salary structure
5.Hierarchy, responsibility, and accountability
6.Subjection of official conduct to strict rules of discipline and control
7.Supremacy of abstract rules
8.Impersonal authority (e.g. office bearer does not bring the office with them)
9.Political neutrality
 Elton Mayo And F. J. Roethlisberger
And The Hawthorne Studies

• The Hawthorne Effect refers to people modifying their behavior simply because they are
being observed. The effect gets its name from one of the most famous industrial history
experiments that took place at Western Electric’s factory in the Hawthorne suburb of
Chicago in the late 1920s and early 1930s. However, subsequent analyses of the effect have
revealed that the original results were likely overstated along with several flaws in the study's
design and execution.

• The National Research Council initially designed the Hawthorne experiments to study the
effect of shop-floor lighting on worker productivity at a telephone parts factory in
Hawthorne. However, the researchers were perplexed to find that productivity improved, not
just when the lighting was improved, but also when the lighting was diminished. Productivity
improved whenever changes were made in other variables such as working hours and rest
breaks.
• According to the studies, the productivity improvement was due to such social factors as morale,
satisfactory interrelationships between members of a workgroup (a sense of belonging), and e ffective
management— a kind of managing that takes into account human behavior, especially group behavior,
and serves it through such interpersonal skills as motivating, counseling, leading, and communicating.

• This phenomenon, arising basically from people being “noticed,” has been named the Hawthorne e ffect.
 Recent Contributors to
Management Thought
Peter F. Drucker

W. Edwards
Deming and
Joseph M. Jura

Laurence Peter

William Ouchi
Approaches to management

• The empirical, or case, approach,

• The managerial roles approach,

• The contingency, or situational, approach,

• The mathematical, or "management science," approach,

• The decision theory approach,

• The reengineering approach,

• The systems approach,

• The sociotechnical systems approach,

• The cooperative social systems approach,

• The group behavior approach,

• The interpersonal behavior approach,

• McKinsey's 7-S framework,

• The total quality management approach,

• The management process, or operational Approach.

The Managerial Roles
Approach (Mintzberg)

• Interpersonal roles
• Informational roles
• Decision roles
The Management Process,
or
Operational Approach
• The management process, or
operational, approach draws together
the pertinent knowledge of management
by relating it to the managerial job.

• It tries to integrate the concepts,

principles, and techniques that underlie
the task of managing
SOCIOTECHNICAL SYSTEM APPROACH
•Within a socio-technical systems perspective, any organization, or
part of it, is made up of a set of interacting sub-systems. Thus, any
organization employs people with capabilities, who work towards
goals, follow processes, use technology, operate within a physical
infrastructure, and share certain cultural assumptions and norms.

•Socio-technical theory has at its core the idea that the design and
performance of any organizational system can only be understood
and improved if both ‘social’ and ‘technical’ aspects are brought
together and treated as interdependent parts of a complex system.

•Organizational change programs often fail because they are too

focused on one aspect of the system, commonly technology, and
fail to analyze and understand the complex interdependencies that
exist
GROUP BEHAVIOR
APPROACH
•The Behavioral approach was a reaction to shortcomings of
classical management theory that focused on individual
productivity and through efficiency and organizational structure.

•These approaches failed to adequately account for the human

aspects of organizational performance.

•The group behavior approach emphasizes on the behavior of

people in groups. Based on sociology and social psychology, it
studies groups pattern/large group patterns often called
organizational behavior.
•In an organizational context, groupthink and group
behavior are important concepts as they determine the
cohesiveness and coherence of the organizational culture
and organizational communication.

•For instance, unless the HRD function communicates the policies

clearly and cogently, the employees would not participate and
comply with them wholeheartedly. Hence, molding group behavior
is important for organizations.

•However, this cannot be construed to mean that all employees

must think and act alike
INTERPERSONAL BEHAVIOR
APPROACH
•Interpersonal Behavior is basically how “two persons” interact in
any setting. It is extremely important in organizations or even
schools and other educational institutions to strengthen
interpersonal relationships. This behavior will result in productive
work, which is ultimately what organizations are looking for.
•Interpersonal skills are important for communicating and working
with groups and individuals in your personal and professional life.
People with strong interpersonal skills tend to build good
relationships and can work well with others. They understand
family, friends, coworkers, and clients well.
•Types of Interpersonal behavior: Aggressive, Non Assertive and
Assertive
COOPERATIVE SOCIAL
SYSTEM APPROACH
It advocates a system of cooperation using both interpersonal and
group behavioral aspects.
Concept includes any cooperative group with a purpose and is
concerned with both interpersonal and group behavioral aspects.
MCKINSEY’S 7-S PROGRAM
It identified seven internal elements of an organization that need to
align for it to be successful.
The model categorizes the seven elements as either "hard" or
"soft“.
•Strategy: this is your organization's plan for building and
maintaining a competitive advantage over its competitors.
•Structure: this is how your company is organized (how
departments and teams are structured, including who reports to
whom).
•Systems: the daily activities and procedures that staff use to get
the job done.
•Shared Values: these are the core values of the organization and
reflect its general work ethic. They were called "superordinate
goals" when the model was first developed.
•Style: the style of leadership adopted.
•Staff: the employees and their general capabilities.
•Skills: the actual skills and competencies of the organization's
employees.
TOTAL QUALITY
MANAGEMENT APPROACH
•This approach focuses on providing dependable and satisfying
products and services (Deming) or products/services that are fit for
use (Juran) as well as conforming to quality requirements (Crosby).

•The general concept are continuous improvement, attention to

detail, teamwork, and quality education.
The management process, or
operational, approach
Input–output model
It is the task of managers to transform the
inputs, in an effective and efficient manner,
into outputs
The Functions Of Managers

• Planning
• Organizing
• Staffing
• Leading
• Controlling
Planning
• Planning involves selecting missions
and objectives as well as the actions
to achieve them; it requires decision
making, that is, choosing future
courses of action from among
alternatives.
Organizing

• Organizing is part of managing which

involves establishing an intentional
structure of roles for people to fill in
an organization.
Staffing

Staffing involves filling, and

keeping filled, the positions in the
organization structure.
Leading
• Leading is influencing people so that
they will contribute to organizational
and group goals.
Controlling
• Controlling is measuring and
correcting individual and
organizational performance to ensure
that events conform to plans.