1. MGT 113
PRINCIPLES OF
MANAGEMENT
Management
Theories-history and
current thinking
Chapter Two
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2. Historical Background Of Management
• Organizations Have Existed for Thousands of Years
– testifies to the existence of early management practice
• ability to create the Pyramids, Great Wall of China
• Significant Pre-Twentieth-Century Events
– Wealth of Nations - Adam Smith
• division of labor - breakdown of jobs into narrow and
repetitive tasks increased productivity
– Industrial Revolution
• substitution of machine power for human power
• large organizations required formal management
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3. Historical Background Of Management
Siapakah Bapa Pengurusan Scientific Management?
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4. Historical Background Of Management
• Frederick Winslow Taylor (March 20, 1856 – March 21,
1915) was an American mechanical engineer who
sought to improve industrial efficiency.
• He is regarded as the father of scientific management
and was one of the first management consultants.
• Taylor was one of the intellectual leaders of the
Efficiency Movement and his ideas, broadly conceived,
were highly influential in the Progressive Era.
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5. Scientific Management
• F.W. Taylor 1856-1915 “Father of Scientific Management”
– use of scientific methods to define the “one best way” for a job to be
done.
– perspective of improving the productivity and efficiency of manual
workers.
– Current practice: Pace productivity- a consulting company that offers
time efficiency analysis services to managers. The company uses
proprietary instrument called a Time corder, a handheld electronic
device that allows employees to track their own time by pushing
buttons associated with pre coded work activities. When an
employee presses a new button, time stops recording on the previous
activity and begins recording on a new one. The Time corder tracks
how many times each activity occurs as well as how much time is
cumulatively spent on each activity. Pace productivity provides
managers with summary reports concerning how many times work
activities are performed, time spent on them, and suggestions for
improving worker efficiency based upon the results of their study.
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6. Scientific Management
• Frank Gilbreth (1868-1924) and Lillian Gibreth (1878-
1972)
-use of motion pictures to study hand-and-body
movements
-Motion analysis is used today primarily to establish job
performance standards. Each movement or motion
that is used to do a job is studied to determine how
much time and movement takes and how necessary it
is performing the job. Inefficient or unnecessary
motions are pinpointed and eliminated. (refer table 2.1
Sample variables considered in analyzing motions
pg.57 Modern Management Concepts and skills 11th
edition Samuel C. Certo & S. Trevis Certo)
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7. Scientific Management
Can you give an example of Time and Motion Study of
today?
Answer:
Improve traffic lights sequence during rush hour traffic!
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8. Scientific Management
•Henry L. Gantt (1861-1919)
• Scheduling Innovation The Gantt Chart-this
chart provides managers with an easily
understood summary of what work was
scheduled for specific time periods, how much of
this work has been completed, and by whom it
was done. Eg: MacSchedule a special computer
software to help managers more efficiently and
effectively apply the concept of Gantt Chart
today.
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9. Scientific Management
• A Gantt chart is a common tool for project planning
and keeping track of the status of individual tasks
within a project.
• Excel is a popular tool for creating Gantt charts, but
for more advanced project management activities,
you may need a tool such as Microsoft Project or a
project management add-in for Excel
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10. General Administrative Theorists
• Henri Fayol (1841-1925)
– concerned with making the overall organization
more effective
– developed theories of what constituted good
management practice
• proposed a universal set of management
functions
• published principles of management
– fundamental, teachable rules of management
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11. EXHIBIT : FAYOL’S 14 PRINCIPLES OF MANAGEMENT
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12. EXHIBIT : FAYOL’S 14 PRINCIPLES OF MANAGEMENT
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13. ACTIVITY….
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14. 1. Explain using keywords in a mind map the
theories implemented by Frederick Taylor, Frank
Gilbreth &Henry L Gantt (10mins)
2.Use a mind map to draw our the 14 principles
of management introduced by Henri Fayol.
(10mins)
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15. THE BEHAVIORAL APPROACH
a. To management calls for Works of the Western
a broad understanding Electric Company. Two
of the ways in which phases of Hawthorne
different people Studies as:-
behave, respond, and
interact with one i. The Relay Assembly Test
another in work Room Experiments?
situations like this one.
ii. The bank Wiring
b. The Hawthorne Studies- Observation Room
a series of studies Experiment?
conducted between
1924 and 1932, which sources www.google.com
investigated the
behavior and attitudes
of workers at the
Hawthorne (Chicago)
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16. THE MANAGEMENT SCIENCE APPROACH
Operations Research (Management Science)
-Use of quantitative techniques to improve decision
making:-
• applications of statistics.
• optimization models.
• computer simulations of management activities.
-Linear programming - improves resource allocation
decisions.
-Critical-path scheduling analysis - improves work
scheduling.
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17. EXAMPLE
Linear Responsibility Chart for Asia Water Exhibition 2012
WBS/Activity Organizer Sales CS Finance Admin/HR Engineering Field Service Q/A
1 Booth booking and and e manual forms N I,P O N, A
2 Brochures I, O,P N N
3 Souveneirs I, P,O N,I
4 Wet Demo Unit O,I N I,P
5 Invitation Cards B I, O,P
6 Exhibitor Tags B N P,O
7 Name Cards B,I I P
8 Bunting I P
9 Stationery, Tools & Packing Materials I P,O N,I I
10 Electrical Tools for Demo Unit N P
11 Time Table for Exhibition I,P O N N N N
12 Set Up B I,N I,P I,O, N N N
13 Water Dispenser Bottles for Demo Unit I,O I N P
14 Pack Down N P N
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A = Approval P = Primary Responsibility R = Review N = Notification
O = Output I = Input B = Initiation
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18. THE CONTINGENCY APPROACH
-The contingency approach to management emphasizes
that what managers do in practice depends on, or its
contingent upon, a given set of circumtances-a situation.
-“If – then” relationships.
-Eg:- If a manger has a group of inexperienced
subordinates, then the contingency approach would
recommend that he or she lead in a different fashion than if
the subordinates were experienced.
-The main challenges of using the contingency approach
are the following:-
a. Perceiving organizational situations as they actually
exist.
b. Choosing the management tactics best suited those
situations.
c. Competently implementing those tactics. 18

19. THE SYSTEM APPROACH
-A system is a number of interdependent parts functioning as a whole for some
purpose.
Types of systems
a. Closed systems - are not influenced by, and do not interact with, their
environments.
b. Opened systems - is continually interacting with its environment.
Systems and “Wholeness”
Six guidelines for anyone conducting system analysis by L. Thomas Hopkins.
1) Wholeness main focus of the analysis and parts receiving secondary
attention.
2) Integration
3) Modifications in each part should be weighed in relation to possible
effects on every other part.
4) Each part has some role to perform so that the whole can accomplish
its purpose.
5) The nature of the part and its function is determined by its position in the
whole.
6) All analysis starts with the existence of the whole. the parts and their
interrelationships should then evolve to best suit the purpose of the whole.
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20. THE SYSTEM APPROACH
The open management system
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21. THE SYSTEM APPROACH
Information for Management System Analysis
Triangular management model-pg 68 Modern Management Concepts and
Skills 11th Edition Samuel C. Certo & S. Trevis Certo 2009.
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22. LEARNING ORGANIZATION: A NEW APPROACH
• A learning organization is an organization that does well
in creating, acquiring, and transferring knowledge, and
in modifying behavior to reflect new knowledge.
• It is emphasizes systematic problem solving,
experimenting with new ideas, learning from experience
and past history, learning from experiences of others,
and transferring knowledge rapidly throughout the
organizations.
• Mangers attempting to build a learning organization
must create an environment conducive to learning and
encourage the exchange of information among all of
organization members. Honda, Corning and General
Electrics are successful learning organizations.
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23. LEARNING ORGANIZATION: A NEW APPROACH
Peter Senge The Fifth Discipline: The Art and
Practice of The Learning Organization
recommend five features building learning
organizations are:-
i. Systems thinking
ii. Shared vision
iii. Challenging of mental models
iv. Team learning
v. Personal mastery
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24. LEARNING ORGANIZATION: A NEW APPROACH
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25. QUESTION:
What are the 5 different approaches
management?
Answer: (Discuss in the facebook forum)
Who are the three important people who
implemented scientific management theories?
Answer: (Discuss in the facebook forum.)
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26. a) Any feedback, suggestions and
comments, please put your query at face
book to be share among team members.
Thank you.
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