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Management - Past to Present

Business Leadership

Nicole Berman

on 27 February 2013

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Transcript of Management - Past to Present

Classical Management Approaches Continuing Management Themes The study of management begins with the classical approaches

1) Scientific Managmenet
2) Administrative Management
3) Bureaucratic Organization

All 3 approaches assume that people at work act in a manner that is driven by ecenomic concerns. Behavioural Management Approaches 1920’s emphasis on human side

Workplace includes: Hawthorne Studies, Maslows Theory of Human Needs, Douglas McGregor and Chris Argyris

Make sure people are social and self actualizing

Search for personal fulfillment and respond to group pressures Quantitative Management Approaches Modern Management Approaches •Modern approaches to management are established by the classical, human resource, and quantitative schools of thought.

•People are complex and variable and have needs that change over time

•They have a range of talents that can be continually developed

•Key foundations include the systems view of organizations and contingency thinking The Hawthorne Studies and Human Relations Maslow's Theory of Human Needs McGregor's Theory of Human Needs Global Awareness Quality and Performance Excellence Twenty First Century Leadership Learning Organizations Bureaucratic Organization Administrative Principles Scientific Management Argyris's Theory of Adult Personality Management Science Organizations as Systems Contingency Thinking •Lessons from the Hawthorne Studies: •Social and human concerns are keys to productivity. •Hawthorne effect — people who are singled out for special attention perform as expected. •Maslow identified 5 levels of human needs:
- physiological, safety, social, esteem and self actialization •Deficit Principle:
•A satisfied need is not a motivator of behavior •Progression Principle:
•A need becomes a motivator once the preceding lower-level need is satisfied. Theory X and Y Theory X Most managers feel their workers believe in theory x which is that they dislike work, lack ambition, are irresponsible are resistant to change, and prefer to be led rather than to lead. Theory X managers create situations where workers become dependent and reluctant. Theory Y Theory y suggests that Willing to work Capable of self control Willing to accept responsibility Imaginative and creative Capable of self-direction Theory Y managers create situations where workers respond with initiative and high performance. •Management practices should accommodate the mature personality by:
•Increasing task responsibility
•Increasing task variety
•Using participative decision making •Classical management principles and practices inhibit worker maturation and are inconsistent with the mature adult personality. •Central to notions of empowerment and self-management. •Employee attitudes, interpersonal relations, and group processes. 1927 •Some things satisfied some workers but not others •The Hawthorne effect is the tendency of persons singled out for special attention to perform as expected •Factors that accounted for increased productivity:
•Group Atmosphere
•Participative Supervision •Designed to minimize the “psychological factors” of previous experiment. System: is a collection of interrelated parts working together for a purpose. A subsystem is a smaller component of a larger system Open System: interacts with its environment and transforms resource input into outputs. •Chester Barnard

•His idea was organizations are co-operative systems that will achieve great things by integrating the work of individuals to achieve a common purpose •Tries to match managerial responses with problems and opportunities unique to different situations. •There isn’t “one best way” to deal with situations •The contingency thinking helps manager deal with different situations in
different ways •Contingency thinking recognizes what structure to use for one organization may not always work well for another organization “The principal object of management should be to secure maximum prosperity for the employer, coupled with the maximum prosperity for the employee” –Frederick W. Taylor Look at the best way to perform a task through high efficiency •Taylor believed the because workers were doing their job ‘their way’, they would digress and sacrifice efficiency 4 principles in creating maximum efficiency:
1. Create a ‘science’
2. Employ best suited individuals
3. Train workers and provide positive incentive to co-operate
4. Support workers and their operations and plans •Focus on the manager and basic managerial functions

•Henri Fayol viewed management as something that can be taught and honed Described management as something which consisted of five plans of action
1)Foresight- future plan of action
2)Organizing- resources for the plan
3)Commanding- lead, select, and evaluate
4)Co-ordinating- ensure no problem
5)Controlling- ensure plan succeeds Focuses on the guideline for structuring with formalization of rules Weber envisioned companies should run on a non social aspect The Ideal Bureaucracy Management & Ownership is Seperate Divison of Labor Positions Organized in Hierachy Selection Based on Technical Qualification Managers Subject to Rule & Procedures Decisons Recorded in Writing The numerous themes have helped create the trends in managment as organizations begin the 21st century

The society we work and live in is ever-changing which has affected the way organizations run. Wanted to know how quantitative techniques could imporve managerial decsion making It was beleived that numerical techniques can assist in problem solving In todays society, this is done through computer technology and software programs A learning organization continuously learns and adapts to new circumstances which can cause many organizations to be sucessful Peter Senge identifies the following as the core ingredients to a succesfull learning organization:

1) Mental Models
2) Personal Mastery
3) Systems Thinking
4) Shared Vision
5) Team Learning Organizations that met this criteria are known to offer work settings that help employees improve their abiliy to learn. In today's society it is essential for organizations to get accustom to new situations to be successful In the 21st century leadership is considered a special responsibility and a primary key to personal and organizational performance 21st century managers will have to push to meet expectations such as:

1) Global Strategist
2) Master of Technology
3) Inspiring Leader
4) Model of Ethical Behavior Managers and employees must be well educated and must be open to be educated throughout their careers • Managers and workers in progressive organizations are quality
conscious • Quality provides competitive advantage • Total quality management (TQM) is a comprehensive approach to build quality into all aspects of operations

• Quality must be maintained at each point of the value chain: Sequence of activities that transform materials into finished products •William Ouchi • Pressure for quality and performance excellence is created by a highly competitive global economy

• Continuing efforts of businesses around the globe to transform themselves into world-class operations Prominent in the theory Z management approach are such things as:
1) Long-term employment
2) Slower promotions and more lateral job movements
3) Attention to career planning and development
4) Consensus decision making
5) Emphasis on teamwork and employee involvement Use of staff specialists to help managers apply techniques such as:
- Mathematical Forecasting

- Linear Programming

- Queuing Theory

- Network models

- Stimulation

Good judgment and appreciation for human factors must accompany use of quantitative analysis.

Software and hardware developments have expanded potential quantitative applications to managerial problems. Management - Past to Present
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