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Chap 2 MGT

Chapter 2 provides an overview of the historical development of management, highlighting key milestones such as the construction of the Egyptian Pyramids and the Great Wall of China, as well as the influence of figures like Adam Smith and Henry Fayol. It discusses various management theories, including Classical Theory, Bureaucratic Management, Human Relations Theory, and the Quantitative and Qualitative Approaches, emphasizing their impact on organizational efficiency and employee motivation. The chapter concludes with the Contingency Theory, which advocates for adaptable management strategies based on specific situational needs.

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12 views4 pages

Chap 2 MGT

Chapter 2 provides an overview of the historical development of management, highlighting key milestones such as the construction of the Egyptian Pyramids and the Great Wall of China, as well as the influence of figures like Adam Smith and Henry Fayol. It discusses various management theories, including Classical Theory, Bureaucratic Management, Human Relations Theory, and the Quantitative and Qualitative Approaches, emphasizing their impact on organizational efficiency and employee motivation. The chapter concludes with the Contingency Theory, which advocates for adaptable management strategies based on specific situational needs.

Uploaded by

abdurraffayatdi
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We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER: 2

“INTRODUCTION TO MANAGEMEN”

1. Historical Background of Management


Management is as old as human civilization. Early forms of management appeared in massive
projects requiring planning, organization, and supervision.

 Egyptian Pyramids:
The construction of the Great Pyramid of Giza involved managing thousands of laborers
and vast resources. This demonstrates ancient project management, emphasizing
teamwork, resource allocation, and time management.
 Great Wall of China:
Similarly, the Great Wall of China showcases management on a grand scale, requiring
long-term planning and efficient resource utilization.
 Adam Smith (1723–1790):
Known as the "Father of Economics," Adam Smith introduced concepts like free-market
economics and the division of labor in his book The Wealth of Nations (1776).

o Division of Labor: Smith explained that breaking work into smaller tasks makes
workers more skilled, speeds up processes, and boosts productivity. This idea
influenced early factory management.

2. Industrial Revolution (1760–1840)


The Industrial Revolution marked a shift from manual work to machine-based production,
increasing the scale of operations.

 Factories emerged, and owners needed managers to oversee processes, allocate resources,
and ensure efficiency.
 This era highlighted the need for structured management principles and the role of
managers in controlling large organizations.

3. Classical Theory of Management


Classical theory laid the foundation for modern management. It focuses on improving efficiency
and organizing work systematically.
Henry Fayol (1841–1925):
A French mining engineer, Fayol is considered one of the pioneers of modern management
theory. His book General and Industrial Management (1916) introduced the 14 Principles of
Management, which remain highly influential.

14 Principles of Management:

1. Division of Work: Specialization allows workers to focus on specific tasks, increasing


efficiency and productivity.
2. Authority: Managers must have the authority to give orders and the responsibility to
ensure they are carried out.
3. Discipline: Rules and agreements must be followed, requiring good conduct and respect.
4. Unity of Command: An employee should receive orders from only one superior to avoid
confusion.
5. Unity of Direction: Teams with the same objectives should be working under one plan
and one leader.
6. Subordination of Individual Interests to the General Interest: The interest of the
organization should come before personal interests.
7. Remuneration: Fair compensation should be provided to employees for their work.
8. Centralization: The balance between centralized and decentralized authority depends on
the organization.
9. Scalar Chain: There should be a clear chain of command from top to bottom.
10. Order: There should be an orderly placement of resources, including people and
materials, for efficiency.
11. Equity: Managers should be kind and fair to employees to create loyalty and devotion.
12. Stability of Tenure of Personnel: Job security and stability reduce turnover and improve
efficiency.
13. Initiative: Employees should be encouraged to take initiative within the organization.
14. Esprit de Corps: Promoting team spirit will build harmony and unity within the
organization.

Effective Management:
→ Set of methods to guide an organization through controlled change

Administrative Management Theory


 Author: Henry Fayol (19th century)
 Fayol believed managers should follow specific principles and values to maximize
productivity.
 Key Elements:
o Division of work
o Unity of command
o Equity
Explanation:
This theory highlights how managers can create an organized and structured work environment
by dividing tasks effectively, maintaining fairness, and ensuring clear reporting relationships.
Fayol's principles emphasize the manager's role in creating harmony and efficiency within the
organization.

Bureaucratic Management Theory


 Author: Max Weber (1864–1920)
 Max Weber, a German sociologist, proposed that organizations should operate with a
structured hierarchy and rules to ensure efficiency and fairness.
 Key Elements:
o A clear chain of command
o Specialized roles for employees
o Authority based on positions rather than individuals

Explanation:
Weber’s theory focuses on creating an organization with well-defined roles and responsibilities.
He emphasized that authority should come from a person’s role and not personal traits, ensuring
unbiased decisions. This theory introduced professionalism and structure in management.

Human Relation Theory


 Author: George Elton Mayo (1880–1949)
 Mayo, an Australian psychologist, studied workplace behavior and concluded that
personal attention and employee well-being motivate workers more than salaries.
 Key Elements:
o Employee attention improves productivity.
o Workers need good relationships with supervisors.

Explanation:
This theory shifted the focus from tasks to people. Mayo’s research showed that treating
employees as individuals with emotional and social needs leads to higher motivation and
productivity. This was a revolutionary shift from earlier task-focused management theories.

Hawthorne Studies
 Definition: The Hawthorne Effect is the tendency of people to change their behavior
when they know they are being observed.
 Key Findings:
1. Employees feel motivated when they receive attention.
2. Productivity improves even without better working conditions.
Explanation:
The Hawthorne Studies (conducted in the 1920s and 1930s) introduced the human element into
management. Researchers found that psychological and social factors, such as feeling valued and
noticed, were more significant motivators than physical conditions. This study laid the
foundation for human relations theory

Quantitative Approach
The quantitative approach focuses on using data, numbers, and mathematical models to solve
problems and make decisions. It is primarily used in industries where analysis and efficiency are
crucial, such as manufacturing, logistics, finance, and marketing.The quantitative approach
involves collecting measurable data and analyzing it. The main purpose of the quantitative
approach is to improve decision-making by relying on factual data and evidence rather than
intuition. It helps managers:

1. Solve Complex Problems: Breaking down complicated issues into simpler numerical
models.
2. Make Accurate Predictions: Using data trends to anticipate future outcomes.
3. Increase Efficiency: Optimizing resources and time through analysis.

Qualitative Approach
The qualitative approach emphasizes understanding the context, emotions, and circumstances
behind decisions. Unlike the quantitative approach, it focuses on non-measurable aspects, such
as human behavior, culture, and organizational dynamics.This approach is less about numbers
and more about observation and adaptation:

1. Understanding Situations: Managers analyze the specific environment or challenges a


business is facing.

The qualitative approach aims to address unique and complex challenges by considering factors
that cannot be quantified.

Contingency Theory
 What It Is: This theory suggests that there is no one perfect way to manage an
organization. Instead, the best approach depends on the situation.
 Purpose: Helps managers make flexible and practical decisions tailored to the
organization’s specific needs.

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