Management History Module PDF

CH. 2 MANAGEMENT HISTORY MODULE Major Approaches to Management Management in the Early Ages Management has been practiced for a long time and has existed for thousands of years. History has proof that projects of tremendous scope,‫نطاق هائل‬ employing numerous‫ عديد‬people, were compl...

CH. 2 MANAGEMENT HISTORY MODULE Major Approaches to Management Management in the Early Ages Management has been practiced for a long time and has existed for thousands of years. History has proof that projects of tremendous scope,‫نطاق هائل‬ employing numerous‫ عديد‬people, were completed. ✓ The Egyptian pyramids The construction of a single pyramid occupied more than 100,000 workers for 20 years. Who told each worker what to do? Who ensured that there would be enough stones at the site to keep workers busy? ✓ The Great Wall of China ✓ The city of Venice (major economic and trade center in the 1400s) Job Specialization ✓Adam Smith wrote ‘The Wealth of Nations’ (1776) ✓The book talked about Division of Labor (or Job Specialization) and the economic advantages that organization and society would gain from this. ✓Breaking down jobs into narrow and repetitive ‫ متكرر‬tasks. ✓Division of Labor increased productivity by increasing each worker`s skill and dexterity,‫براعة‬ saving time lost in changing tasks. Industrial Revolution Engineering = Management ✓Started in the late 18th century ✓Machine power was substituted for human power ✓It became more economical to manufacture goods in factories rather than at home ✓These large efficient factories needed “managers” to-forecast ‫ توقع‬demand‫ الطلب‬, ensure supplies, assign tasks to people, direct daily activities and so on ✓Not much guidance available to managers 1- Classical Approach ‫(النهج‬1911-1947) 1.1 The Scientific Management ✓Frederick Winslow Taylor- “Father” of scientific management. ✓Develop “one best way” for a job to be done. ✓Productivity could be increased by putting the right person on the job with the correct tools and equipment, having the workers follow instructions exactly ✓Microchronometer ‫جهاز‬- detect ‫ يكشف‬wasted motion and eliminate it. 1- Classical Approach (1911-1947) 1.2 General Administrative ‫إداري‬Theory ✓ Henry Fayol`s attention was directed at the activities of all managers. ✓ Focused on what managers did and what constituted ‫ يشكل‬good management practice. ✓ Fayol developed 14 principles of management that could be applied to all organizational situations and taught in schools. Fayol’s Fourteen Principles of Management 1 1. Division of work. Specialization increases output by making employees more efficient. 2. Authority.‫سلطة‬ Managers must be able to give orders, and authority gives them this right. 3. Discipline.‫ انضباط‬Employees must obey and respect the rules that govern the organization. 4. Unity of command. Every employee should receive orders from only one superior. 5. Unity of direction. The organization should have a single plan of action to guide managers and workers. 6. Subordination ‫ تبعية‬of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole. 7. Remuneration. ‫مكأفاة‬Workers must be paid a fair wage ‫األجر‬for their services. Fayol’s Fourteen Principles of Management 2 8. Centralization. This term refers to the degree to which subordinates ‫مرؤوسين‬are involved in decision making. 9. Scalar chain ‫تسلسل عددى‬. The line of authority from top management to the lowest ranks is the scalar chain. 10. Order. ‫ طلب‬People and materials should be in the right place at the right time. 11. Equity. ‫عدالة‬Managers should be kind and fair to their subordinates. 12. Stability of tenure of personnel.‫استقرار االشحاص‬ Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. 13. Initiative. ‫مبادرة‬Employees allowed to originate and carry out plans will exert ‫بذل‬high levels of effort. 14. Esprit de corps‫روح الجماعة‬. Promoting‫ تعزيز‬team spirit will build harmony and unity within the organization. 1- Classical Approach (1911-1947) 1.3 Bureaucracy ✓ Weber a German sociologist studied and developed a theory of authority structures ✓ He called the ideal type of organization: bureaucracy ✓ An organization characterized by division of labor, clearly defined hierarchy‫سل‬ َ َ ‫ت‬, detailed rules and ُ ‫سل‬ regulations‫أنظمة‬, and impersonal relationships. ✓ The following slide shows what Weber thought to be was an ideal bureaucracy. Weber: Bureaucracy (The ideal type) 2- Behavioral Approach (Late1700s-1950s) ✓Since management if about people, this area researches the actions (Behaviour) of people at work. ✓Known as organizational behaviour (OB) Hawthorne Studies ✓wanted to see what led to increase in group productivity ✓results indicated that the incentive ‫محفزة‬plan had less effect on a worker’s output ✓group pressure, acceptance, and security had more ✓Concluded that social norms ‫األعراف االجتماعية‬and group standards ‫معايير المجموعة‬were key determinants of individual work behavior. ✓‫المحددات الرئيسية لسلوك العمل الفردي‬ 3- Quantitative Approach (1940s-1950s) ✓The use of quantitative techniques to improve decision making. ✓Applying statistics, optimization models, computer simulations, and other quantitative techniques to management activities. ✓The airline industry innovated a unique boarding process called “reverse pyramid” ✓Has saved at least 2 minutes in boarding time Total quality management (TQM) is a management philosophy devoted to continual improvement ‫فلسفة اإلدارة المكرسة للتحسين المستمر‬and responding to customer needs and expectations. 4- Contemporary‫ معاصر‬Approach (1960s-Present) ✓Earlier approaches focused on managers` concerns inside the organization. ✓ During this time researchers began to look at the external environment outside the organization. ✓Two contemporary management perspectives ‫توقعات‬are part of this approach. 4.1 System: a set of interrelated ‫مترابطة‬and interdependent ‫ متوافق‬parts arranged in a manner that produces a unified whole. i.e. Closed and Open System. Open System 4- Contemporary Approach (1960s-Present) 4.2 Contingency‫طارئ‬: This approach is also known as situational approach which says that organizations are different, face different situations (Contingencies) and require different ways of managing. ✓“if, then” approach.