BGB21103 ESSENTIAL MANAGEMENT

PRINCIPLES

Management Theory:
Essential Background for the
Successful Manager
Historical perspectives
Contemporary perspectives
Islamic perspectives

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 Early Management

Management has
been practiced a
long time.
Organized endeavors
directed by people
responsible for
planning, organizing,
leading and
controlling have
existed for thousands
of years
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 Is Management an Art or a Science?

Great managers like great painters or actors

are those who have the right mix of intuition,
judgment and experience.
Management is also a science, it can be
approached deliberately, rationally and
systematically.

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 Is Management an Art or a Science?

Thats what the scientific method is, a logical

process, embodying four steps:
1. You observe events and gather facts
2. You pose a possible solution or explanation
based on those facts
3. You make a prediction of future events
4. You test the prediction under
systematic conditions

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 Environmental Factors Influencing
Mgmt Thought
Factor that caused mgmt theories to alter their
views on what constitute a good approach to mgmt:
1. Economic influence
2. Social influence
3. Political influence
4. Technological influence
5. Global influence

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 Two Overarching Perspectives About Management &
Four Practical Reasons for Studying Them

Historical: includes
three viewpoints
classical, behavioral, &
quantitative

Contemporary:
includes two viewpoints
systems & contingency

Islamic view??

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 Historical Management Perspective:
Classical Viewpoint

The Classical Viewpoint:

Late 19th and early 20th century(1880 1920)
Emphasized on finding ways to manage work
more efficientlytwo branches: Scientific and
Administrative

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 Scientific Management

Scientific Management:
emphasized the scientific
study of work methods to
improve the productivity of
individual workers

Two of its chief proponents were

Frederick W. Taylor, & Frank and Lillian Gilbreth

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 Frederick Taylor & the Four Principles
of Scientific Management
1. Evaluate a task by scientifically studying each
part of the task and develop work standard
2. Carefully select workers with the right
abilities for the task
3. Give workers the training and incentives to do
the task with the proper work methods and
standard
4. Use scientific principles to plan the work
methods and ease the way for workers to do
their jobs (work planning)
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 Administrative Management

Administrative
Management:
concerned with
managers and the
functions they
perform

Among the pioneering theorists were

Henry Fayol & Max Weber(pic)

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 Henry Fayol and the Functions
of Management
Henry Fayol was the first to systematize management
management behavior he was the first to identify the major
functions of management: planning, organizing, leading,
controlling, as well as coordinating
Planning Organizing
You set goals and You arrange tasks,
decide how to people, & other
resources to
achieve them accomplish the work

Controlling Leading
You monitor You motivate, direct &
performance, compare it otherwise influence
with goals and take people to work hard to
corrective action as achieve the
needed organizations goals
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 Max Weber & the Rationality
of Bureaucracy
To Weber, a bureaucracy was a rational, efficient
ideal organization based on principles of logiche
felt good organizations should have five
bureaucratic features:
1. A well-defined hierarchy of authority
2. Formal rules and procedures
3. A clear division of labor
4. Impersonality - no personal favoritism
5. Employee selection and promotion -
Careers based on merit
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 The Problem with the Classical Viewpoint

The classical
viewpoint tends to be
too mechanistic: it
tends to view humans
as cogs within a
machine, not taking
into account the
importance of human
needs

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 Historical Management Perspective:
The Behavioral Viewpoint
Behavioral
Viewpoint:
Middle 20th century(1920)
Emphasized the
importance of
understanding human
behavior and motivating
employees toward
achievementdeveloped
over three phases: early
behaviorism, the human
relations movement, &
behavioral science
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 The Early Behaviorists: Munsterberg,
Follett, and Mayo
Hugo Munsterberg & The First Application of Psychology
to Industry
Father of Industrial Psychology 1. Study jobs and determine
which people are best suited
Munsterberg felt to specific jobs
psychologist could 2. Identify the psychological
contribute to industry in conditions under which
three ways: employees did their best
work
3. Devise management
strategies to influence
employees to follow the
managements interests

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 The Early Behaviorists: Munsterberg,
Follett, and Mayo
Mary Parker Follett & Power Sharing Among
Employees & Managers 1. Organizations should be operated
as communities with managers
Follett thought and subordinates working
together in harmony
organizations should 2. Conflicts should be resolved by
become more having the managers and workers
talk over differences and find
democratic, with solutions that would satisfy both
managers and parties: integration
employees working 3. The work process should be
under the control of workers with
cooperatively relevant knowledge rather than of
managers who should act as
facilitators

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 The Early Behaviorists: Munsterberg,
Follett, and Mayo
Elton Mayo & the Supposed Hawthorne
Effect 1. In later experiments, variables such
Elton Mayo and his colleagues
conducted studies at Western
Electrics Hawthorne Plant Illinois,
and began with an investigation to
see if different lighting affected
workers productivity
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as wage levels, rest periods and
length of the work day were varied
2. Worker performance seemed to
increase over time leading Mayo
and his colleagues to hypothesize
the Hawthorne Effect
3. That employees worked harder if
they received added attention, if
they thought managers cared about
their welfare and that supervisors
paid attention to them
4. They succeeded in drawing
attention to the social man and
how managers using good human
relations could improve worker
productivity
 The Human Relations Movement:
Pioneered by Maslow & McGregor
Human Relations Movement: proposed that better
human relations could increase worker productivity
1. What motivates you? Food,
Security, Love? Recognition,
Abraham Maslow & the
Self-fulfillment?
Hierarchy of Needs
2. Probably all of these, though
One of the earliest to some more than others
study motivation,
Maslow proposed his 3. Maslow proposed that the
needs are physiological,
hierarchy of human safety, social, esteem, and
needs in 1943. self-actualization

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 The Human Relations Movement: Douglas
McGregor & Theory X versus Theory Y

Theory X Theory Y

Pessimistic negative view Optimistic positive view of

towards workers workers: human relations
Workers are irresponsible proponents view
Workers are resistant to Workers are capable of
change accepting responsibility
Workers lack ambition, Workers are capable of self-
hate to work direction
Workers would rather be Workers are capable of self-
led than lead control
Workers are capable of being
imaginative and creative
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 Historical Management Perspective:
The Quantitative Viewpoints
Quantitative Management
the application of
management of quantitative
techniques, such as
mathematics, statistics, and
computer simulations for
decision making and
problem solvingtwo
branches are management
science and operations
research/mgmt

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 The Quantitative Viewpoints:
Management Science

Management
Science focuses
on using
mathematics to aid
in problem solving
and decision making
- eg. hotel
occupancy rate

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 The Quantitative Viewpoints:
Operations Research/Management

Operations Research/Mgmt
focuses on managing the
production and delivery of an
organizations products or
services more effectively.
- Concern with work scheduling,
production planning etc.
- eg. bank counter

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 The Contemporary Perspective:
The Systems Viewpoint
The Systems Viewpoint
regards the organization as a
system of interrelated
parts(1950s)
By adopting this perspective
you can look at your
organization in two ways
1. A collection of subsystems
parts making up the whole
system
2. A part of the larger environment

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 Panel 2.3: The Four Parts of a System
Input Transformational Output
Process The products, services,
The people, money,
information, equipment The organizations profits, losses,
and materials required capabilities in employee satisfaction
to produce and management and or discontent, and the
organizations goods or technology that are like that are produced
services applied to converting by the organization
inputs to outputs
Example: For a jewelry Example: Gold and silver
designer- designer money, Example: Designers rings, bracelets, etc.
artistic talent, gold and management skills
silver tools, marketing (planning, organizing,
expertise leading, controlling) gold
and silver smithing tools
and expertise, website for
marketing

Feedback
Information about the reaction of the environment to the outputs that
affect the inputs
Example: Web customers like Africa style designs, dislike imitation Old English
designs
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 The Contemporary Perspective: The
Contingency Viewpoint
The Contingency
Viewpoint
In the 1960s
Emphasizes that a managers
approach should vary
according tothat is, be
contingent onthe individual
and the environmental situation
Its all depends
Other factors, organizational
size and culture

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 Future Issues

Following are factors that will have a huge influence

on management thinking and have enormous
impact on how business and industries are
managed
1. Diversity cultural, racial and gender
2. Globalization
3. Quality
Theory Z by Japanese: a manager place trust in the
employees and make them feel like an integral part
of the organization

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 The Islamic Perspective

Islamic management, unlike the conventional management,

looks at the management of organizations from the
perspective of the knowledge from the revealed sources
and other Islamic sources of knowledge (Shariah).
There is no demarcation between the secular and the
religious; human life is an organic whole.
All human activities can be ibadah provided they are
guided by Allahs commandments.

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 The Islamic Perspective

In Islamic management, the organizational objectives are

both economic and non-economic and are subservient to
the larger purpose of human existence whereas in
conventional management, organizational objectives are
subservient to organizational interests.
The MS 1900:2005 is basically the Islamic version of MS
ISO 9001:2000. This Malaysian Standard is developed with
the aim to ensure that organizations are managed in
accordance to the principles and practice of the quality
management system from Islamic perspective.

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Thank you.