Principles of

Management
Class#2 –Sep 23,2020
IoBM
BBA Class 8409
Faculty : Muhammad Ayub Khan
 Topics today

Evolution of up Ten
Wrap up the
Attendance Recap Management Managerial
last lecture
Theories Roles

Max Weber’s F.W Taylor’s

Case: Fayol’s H. Fayol’s 14
Bureaucratic Videos Scientific
Principles Principles
Model Management
Recap from MANAGEMENT MANAGEMENT
PROCESS
FUNCTIONS
last Class

Q&A

MANAGEMENT
COMPETENCIES
 Top • responsible for developing the
organization’s strategy and being a
Managers steward for its vision and mission.

Types of Functional • responsible for the efficiency and

effectiveness of an area, such as
managers
Managers accounting or marketing

Supervisory • responsible for coordinating a subgroup

of a particular function or a team
or team composed of members from different
managers parts of the organization.
Managerial behavior
Traditional vs Contemporary
Contemporary Challenges for Managers

Ethics &
Multitasking Technology Globalisation
regulations

Productivity
Environment Change Empowerment
with quality

Strategy Workforce
formulation Diversity
Mintzberg Ten Managerial Roles

Interpersonal Informational Decisional

Entrepreneur
Figurehead Monitor
Disturbance

Leader Disseminator Handler

Resource Allocator
Liaison Spokesperson
Negotiator
Mintzberg’s
10 Role
-Video
 What examples come to your mind for each
of the Ten Managerial Roles described by
Henri Mintzberg

Class Which roles are played by which level of

managers in a small size , medium and large
Discussion- organization?
Ten Do you think all roles are equally performed
Managerial by all managers?

Roles
What role is performed to which degree by a
Team Manager, Department Manager & a
Project Manager.
 Understand Mintzberg’s 10 Managerial roles with examples

Understand the application of Management Principles in real world

Learning
commonalities & differences of Classical & contemporary
Explain management models

Outcomes Describe the application & scope of Bureaucratic Model in modern

workplace today

the management changes brough about by Technology in

Describe organizations

Able to explain Fayol’s 14 management principles

Where Scientific, bureaucratic & administrative management

Explain models are applicable in Pakistan.
 History of
Management(Shor
t video)
 Management and organizations are shaped by forces in the larger society

Social forces are aspects of a society that guide and influence relationships among

Impact of
people, such as their values, needs, and standards of behavior

Political forces relate to the influence of political and legal institutions on people
and organizations

Society on The increased role of government in business is one example of a political force

Management Economic forces affect the availability, production, and distribution of a society’s
resources

The struggle to balance “the things of production” with the “humanity of

production” has continued from the 19th century to today
 • The practice of management can be traced to 3000 b.c.,
to the first government organizations developed by the

Evolution of Sumerians and Egyptians

Management • The early study of management as we know it today

Theories began with what is now called the classical perspective

• This perspective contains three subfields, each with a

slightly different emphasis: scientific management,
bureaucratic organizations, and administrative principles.
 Classical
Management
Theories
Scientific Management
Scientific management emphasizes scientifically determined jobs and management practices as the
1
way to improve efficiency and labor productivity.

In the late 1800s, a young engineer, Frederick Winslow Taylor (1856–1915), proposed that
2 workers “could be retooled like machines, their physical and mental gears recalibrated for
better productivity.

Taylor suggested that decisions based on rules of thumb and tradition be replaced with precise
3 procedures developed after careful study of individual situations.
Scientific Management
The scientific management approach is illustrated by the unloading of iron from rail cars and reloading
finished steel for the Bethlehem Steel plant in 1898

Taylor calculated that with the correct movements, tools, and sequencing, each man was capable of
loading 47.5 tons per day instead of the typical 12.5 tons

He also worked out an incentive system that paid each man $1.85 a day for meeting the new standard, an
increase from the previous rate of $1.15. Productivity at Bethlehem Steel shot up overnight
 Although known as the father of scientific management, Taylor was not alone
in this area.

Henry Gantt, an associate of Taylor’s, developed the Gantt chart, a bar graph
that measures planned and completed work along each stage of production by

Scientific time elapsed

Management Frank B. Gilbreth (1868–1924) pioneered time and motion study and arrived at
many of his management techniques independent of Taylor

Although Gilbreth is known for his early work with bricklayers, his work had
great impact on medical surgery by drastically reducing the time that patients
spent on the operating table. Surgeons were able to save countless lives
through the application of time and motion study
Characteristics of Scientific Management
 Scientific
Management
(Taylorism)
Bureaucratic Theory of Max Weber

Weber envisioned
During the late 1800s,
Employees were loyal to a organizations that would
many European
single individual rather be managed on an
organizations were
than to the organization or impersonal, rational basis.
managed on a personal,
its mission. This form of organization
family-like basis
was called a bureaucracy.
Characteristics of Bureaucratic Model

Weber believed that an

organization based on rational
authority would be more
efficient and adaptable to
change because continuity is
related to formal structure and
positions rather than to a
particular person, who may
leave or die
Six Characteristics of a Bureaucracy
Division of Labor (Specialization)
Advantages
Hierarchy of Authority Efficiency
Predictability

Rules & Regulation (Handbook)

Disadvantages
Impersonality Inflexibility
Empire
Technical Qualification Red Tape

Separation of work & Ownership

Bureaucratic
Model
 Another major subfield within the classical perspective
is known as the administrative principles approach

Whereas scientific management focused on the

productivity of the individual worker, the administrative
principles approach focused on the managerial
Administrativ efficiency.

e Principles The major contributor to this approach was Henri Fayol

(1841–1925)

In his most significant work, General and Industrial

Management, Fayol discussed 14 general principles of
management, several of which are part of management
philosophy today.
 Fayol’s 14 principles of Management
Division of Work
• Task specialization to
increase productiivity
DAD
DID
Authority &
U Responsibility
• The right to give orders
C and commitment to deliver
USSR
Discipline
• Respect & obedience to
rules & policies
Unity of direction
• One head & one plan for a
group
Centralization &
Decentralization
• Balance of delegating
authority to lower levels
Unity of Command
• One boss for one employee
Scalar Chain
• Chain of Command , every
employee has an upper
level to talk to & seek
guidance
Stability of Tenure
• Good people should stay in
jobs
Remuneration
• People should be paid
fairly & rewarded
according to market
conditions
Fayol’s 14 principles of Management
O I SEE

• Everything in the organization in the right place , people &

Order
Initiative
Subordination of Individual
interest to general interest
resources
• Manager should encourage & inspire people to take
initiative
• As an employee you keep the organizational interest above
the personal interest

Equity • Equal treatment for all ,fairness & justice

Espirit de Corps • Unity & harmony in teams

Fayol’s 14
Principles
-Video
 The overall classical perspective as an approach to
management was very powerful and gave
companies fundamental new skills for establishing
high productivity and effective treatment of
Fayol’s employees

Principles
…
Relevance
What are your THOUGHTS ..?
Fayol’s Principles .. Then & Now
• Fayol_rodriques_2_14.pdf