Week 1 Evolution of Management PDF

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HotStanza

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National University

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management theories evolution of management management principles business management

Summary

This document provides an overview of the evolution of management, including key principles and theories proposed by Henri Fayol. It covers topics like division of work, authority and responsibility, and the importance of unity of direction. The document is likely intended for an undergraduate-level course in business administration or management.

Full Transcript

Evolution of MANAGEMENT Objectives 1.Principles of Management 2.The Organization Pyramid HENR FATHER OF GENERAL MANAGEMENT One of the classical theorist that laid down I a number of principles FAYOL Principles of management by HENRI FAYOL “14 Principles of Management...

Evolution of MANAGEMENT Objectives 1.Principles of Management 2.The Organization Pyramid HENR FATHER OF GENERAL MANAGEMENT One of the classical theorist that laid down I a number of principles FAYOL Principles of management by HENRI FAYOL “14 Principles of Management” This is the assignment of specialized jobs to various departments and/or positions 1. Division When work is specialized , people learned the task more easily and perform them of Work more effectively Applies to all kinds of work, managerial or technical example Manufacturing facilities Why? Each person has a task they complete on an assembly line before the product moves to the next station. The person at each station completes one task repeatedly, and the product moves between stations. authority: the power or the right entrusted to make the work possible 2. Authority responsibility: the duty or work assigned to and a particular position Responsibility Henri Fayol finds authority and responsibility to be related and inseparable example The managers should be able to ensure their tasks are being done without fail. A company manager gives his employees the order to go to work the next day at an item exhibition. Therefore, they are responsible for complying with the request and showing up on time at said event. 3. Unit of This means that employees should receive Command orders from one superior/ manager only example 4. Subordination of Individual The interest of one employee or group of employees should not prevail over the Interest to interest of the business General Interest example Suppose an employee wants to take a day off to attend a family event, but their manager requires them to work that day because of a deadline. The employee's interest would have to be subordinated to the organization's interests. Remuneration and method of payment should be fair and afford the maximum 5. possible satisfaction to employees and employer Remuneration Sometimes called compensation Based on “equal pay for equal work” example Examples of financial remuneration include a. Salary b. Hourly pay c. Bonuses (13th month pay) Non-financial remuneration includes a. Health insurance b. Paid sick leave Fayol calls it the extent to which 6. AUTHORITY IS CONCENTRATED It is a system of management wherein Centralization major policies are made only by the top management Example Businesses that have a centralized structure keep decision- making firmly at the top of the hierarchy (among the most senior management). Fast-food businesses like Burger King, Pizza Hut and McDonald's use a predominantly centralized structure to ensure that control is maintained over their many thousands of outlets. 7. Scalar “chain of superior” from the highest to the Chain lowest rank example Suppose in an organization there are 10 employees. If Employee 5 wants to communicate with Employee 9, he must follow the scalar chain in which his information flows from Employee 5,6,7,8, and finally to 9. The same will happen to employee 9, if he wants, it will be through 9,8,7,6 to employee 5. Employees should be given enough time and period to prove his worth to the company Can be applied through probationary 8. Stability appointment (maximum period of sic months, as provided by law) of Tenure Fayol points out the dangers and cost of unnecessary labor turnover, which could be the cause and the effect of bad management example Probationary employee The manager should not let feel his employees of job insecurity. When they feel their job is secure, it helps them to develop a. Experience b. Efficiency Explains that “in union there is strength”, 9. “Esprit as well as an extension of the principle of unit of command de Corps” It emphasizes the need for teamwork and the importance of communication in obtaining it Advantages of Esprit De Corps Principle: 1. Teamwork makes difficult tasks possible. 2. The team spirit among the organizational members is developed. 3. Harmony and mutual understanding are among the employees. 4. Promotes coordination and cooperation in the organization. 5. Works are done with great efficiency. Helps in the efficient achievement of organizational goals. It refers to the specific and limited number 10. Span of subordinates that a manager can effectively handle and control of Control It is determined by the optimum level of effective supervision example A manager with five direct reports has a span of control of five 5 leaders or supervisors 11. Unnecessary elements should be eliminated from all activities as well as Simplicity from the process and procedures established for carrying them example Make a template for drafting a memorandum instead of drafting different instructions for faster outputs 12. Unity of One boss and one plan for a group of activities having same objective Direction example when a single production manager in food manufacturing must direct all production activities, such as a. Process b.Control c. Quality 13. Order Ensures a place for everything e.g. Organization in the work place example You can design work-stations to feature file cabinets in easily-retrievable locations so employees can quickly find the information they need to complete a task. If employees need to print out or copy documents, you can place the copier in an area that's easy to find and doesn't take long to get to. Results from kindness and justice 14. Equity Fairness or justice in the way people are treated example Equity means employees are valued based on their skills, knowledge, and abilities in a workplace, rather than their characteristics. building a. Diversity b. Equity c. Inclusion d. Belonging programs that are inclusive of health conditions or disabilities. For example, employees that are neurodivergent require supportive work conditions that help them thrive. The Organization Pyramid TOP MANAGEMENT President, Vice President, Department Heads, MIDDLE MANAGEMENT Section Chiefs, Supervisors, Etc. LOWER LEVER OR Clerks, Messengers, Typist, RANK AND FILE etc. TOP MANAGEMENT Develops, revise, reviews and approval of long-range plans and strategies Example: a. a road map b. Evaluates overall performance of various departments and ensures cooperation Involves in the selection of key personnel Example: MIDDLE MANAGEMENT Makes plans intermediate-range and prepares long-range plans for review by top management Example: making a road map Analyzes managerial performance to determine capability and readiness for promotion Example: deliberation/meeting for promotion of personnels Establishes departmental policies Example: Department Policies means all written policies, procedures, standards, guidelines, directives, and manuals Counsel subordinates on production, personnel, or other problem Example: Coaches may provide one-on-one training when company policy changes to help employees change their behavior and adapt to innovations. Selects and recruit personnel Example: Internal recruitment External recruitment SUPERVISORY MANAGEMENT Makes detailed, short-range operating plans Example: Increase product prices by 3% over the next three months for this year Reviews performance of subordinates Example: Supervises day-to-day operations Example: a production operational supervisor would be responsible for overseeing all activities in a production factory Makes specific task assignments Example: Draft a memorandum for deadline is August 15, 2024 8:00pm and kindly submit it on hard copy

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