FUNDAMENTALS OF

MANAGEMENT
Class #2
September 2024

Julian Troian
 Hello everyone!!!

I’m Anchal, from Northern India.

Textile designer
turned into
merchandiser.

• Managed the entire process

from order placement to
delivery from 2010-2016
• Entrepreneurship: Designer’s
Den Promoting Indian
Handicrafts and Handloom
Artisans. Shop with purpose
and promote ethical
craftsmanship. 2018-2020
• Volunteering
 Likings

• Reading- Fiction also the books by

Dr. Brian Weiss on alternative
Psychotherapy. Parenting Articles!!
• Forest walks
• Painting- new art forms
• Puzzles
• Gardening-how many plants are
more plants?
• Sitting at the café and observing
people J
Magnolia Tree- Everyone is different and on their own journey!!
A QUICK (I PROMISE) REVIEW OF THE TOP
MANAGEMENT THEORIES
WHY ARE THEORIES IMPORTANT
(even in management, even if they may seem obsolete)

Source of new ideas Guide to action

Understanding
decisions of other Understanding the present
managers / people

Understanding events
Produce results
1. THE BEGINNING… The classical viewpoint
Frederick Winslow Taylor
“Work consists mainly of simple,
not particularly interesting tasks”
“Separate headwork from physical
activities”
“Install managers to do the headwork
and systematically & tightly control,
observe, measure & optimize workers’
physical performance”
(1856-1915) (The Principles of Scientific Management, 1911)
Frank & Lilian Gilbreth

Frank and Lillian

Gilbreth
(1856-1915)
Henri Fayol While Taylor was concerned with first line managers and
scientific method, Fayol’s focus was directed at all the
activities of managers.
He developed 14 principles of management that could
be taught in schools and applied to other organizations.
He has enumerated 6 main functions / roles of
managers:
1. Forecasting
2. Planning
3. Organizing
4. Commanding
5. Coordinating
(1841-1925) 6. Controlling
Henri Fayol’s 14 principles
Max Weber
The father of Bureaucracy and modern Sociology:
- A complex work must be reduced into simpler tasks
- Hierarchy is an accepted chain of command to direct
individual’s effort towards organizational goal
accomplishment
- A strong framework of rules is essential to direct the
effort
- Promotion of people only based on effective merit
(what they know against who they know)
- Hiring of people only based on technical competencies
(education or developed skills)
(1864 - 1920) - The first one to openly speak about analysing human
motivations scientifically
“If you put fences around people, you get sheep.”

William L. McKnight, 1924

2. The behavioral viewpoint

The behavioral viewpoint emphasized the

importance of understanding human
behavior and of motivating employees
toward achievement. The behavioral
viewpoint developed over three phases:
(1) early behaviorism,
(2) the human relations movement, and
(3) behavioral science.
Hugo Munsterberg (early behaviorism)
the First Application of Psychology to Industry
Called “the father of industrial psychology,” German-born Hugo Munsterberg
had a PhD in psychology and a medical degree and joined the faculty at Harvard
University in 1892. Munsterberg suggested that psychologists could contribute
to industry in three ways.
They could:
1. Study jobs and determine which people are best suited to specific jobs.
2. Identify the psychological conditions under which employees do their best
work.
3. Devise management strategies to influence employees to follow
management’s interests.

Why Munsterberg Is Important: His ideas led to the field of industrial

psychology, the study of human behavior in workplaces, which is still taught in
colleges today.
His unpopular ideas always got him hate and was once offered a large sum of
money to resign as a professor from Harvard. He refused.
Mary Parker Follett (early behaviorism)
She anticipated some of today’s concepts of “self-managed teams,” “worker empowerment,”
and “interdepartmental teams”

Instead of following the usual hierarchical arrangement of

managers as order givers and employees as order takers,
Follett thought organizations should become more democratic,
with managers and employees working cooperatively.
The following ideas were among her most important:
Organizations should be operated as “communities,” with
managers and subordinates working together in harmony.
Conflicts should be resolved by having managers and workers
talk over differences and find solutions that would satisfy both
parties—a process she called integration.
The work process should be under the control of workers with
the relevant knowledge, rather than of managers, who should
act as facilitators.
Elton Mayo (early behaviorism)
People achieve more when they get positive attention & good communication
Elton Mayo and the Supposed “Hawthorne Effect” Do you think workers
would be more productive if they thought they were receiving special
attention? This was the conclusion drawn by a Harvard research group in
the late 1920s.
Conducted by Elton Mayo and his associates at Western Electric’s
Hawthorne (Chicago) plant, what came to be called the Hawthorne studies
began with an investigation into whether workplace lighting level affected
worker productivity. (This was the type of study that Taylor or the
Gilbreths might have done.) In later experiments, other variables were
altered, such as wage levels, rest periods, and length of workday. Worker
performance varied but tended to increase over time, leading Mayo and
his colleagues to hypothesize what came to be known as the Hawthorne
effect—namely, that employees worked harder if they received added
attention, if they thought that managers cared about their welfare and
that supervisors paid special attention to them.
Elton Mayo (early behaviorism)
People achieve more when they get positive attention & good communication
Abraham Maslow(The Human Relations Movement)
You will either step forward into growth or you will step back into safety

Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier model of

human needs, often depicted as hierarchical levels within a pyramid.
From the bottom of the hierarchy upwards, the needs are: physiological (food and clothing), safety (job
security), love and belonging needs (friendship), esteem, and self-actualization. Needs lower down in
the hierarchy must be satisfied before individuals can attend to needs higher up.
Douglas McGregor (The Human Relations Movement)
Douglas McGregor came to realize that it was not enough for managers to try to be liked; they
also needed to be aware of their attitudes toward employees
Basically, McGregor suggested in a 1960 book,
these attitudes could be thought of either “X” or
“Y,” which we introduced in the chapter opener
about people-focused organizations.
Theory X represents a pessimistic, negative view of
workers. In this view, workers are considered to be
irresponsible, to be resistant to change, to lack
ambition, to hate work, and to want to be led rather
than to lead. Theory Y represents a human relations
outlook—an optimistic, positive view of workers as
capable of accepting responsibility, having self-
direction and self-control, and being imaginative
and creative.

Why Theory X/Theory Y Is Important: The principal contribution offered by the Theory X/Theory Y perspective
is that it helps managers understand how their beliefs affect their behavior. For example, Theory X
managers are more likely to micromanage, which leads to employee dissatisfaction, because they believe
employees are inherently lazy.
The Behavioral Science Approach
The human relations movement was a Application of Behavioral Science Approach: The
necessary correction to the sterile approach Open-Plan Office—Productivity Enhancer or
used within scientific management, but its Productivity Killer?
optimism came to be considered too
simplistic for practical use. More recently,
the human relations view has been
superseded by the behavioral science
approach to management. Behavioral
science approach relies on scientific
research for developing theories about
human behavior that can be used to
provide practical tools for managers. The
disciplines of behavioral science include
psychology, sociology, anthropology, and
economics.
The Case for Open Office – Pro’s & Con’s
Mixed Results: Studies indicate
- **Visual Distractions**: The
Approximately 80% of U.S. office that benefits of open offices are
movement and activity around
spaces have an open floor plan, frequently overshadowed by issues
employees can disrupt focus and
combining managers and workers like noise and lack of privacy,
hinder creativity, termed "visual
in shared environments. impacting employee relationships
noise."
negatively.

Apple's Transition: Apple is

Origins: The concept emerged in
Use of Headphones: To manage relocating 12,000 employees to a
the 1950s to enhance
noise disturbances, workers often new campus with long tables
communication, reduce costs, and
wear headphones as a signal to instead of cubicles, leading to
boost productivity by fostering
avoid interruptions. employee dissatisfaction and
collaboration.
requests for private spaces.

Seating Impact: Research shows

Disruptions: Open-plan offices Isolation & Stress: Many workers seating arrangements affect
often lead to significant cope with constant distractions by performance; being near high
distractions, primarily from noise, isolating themselves, working from performers can enhance one’s
which can hinder concentration private rooms, or even calling in productivity and potentially
and productivity. sick more frequently. generate significant profits for
companies.
The Quantitative Viewpoint

MANAGEMENT SCIENCE OPERATIONS MANAGEMENT

Why Management Science Is Why Operations Management Is

Important: Important:
Management science stresses the O.M. focuses on managing the production
use of rational, science-based and delivery of an organization’s products
techniques and mathematical or services more effectively
models to improve decision Through the rational management of
making and strategic planning. resources and distribution of goods and
Management science is a services, operations management helps
forerunner to analytics and Big ensure that business operations are
Data efficient and effective.
WHO IS THE FATHER OF MODERN MANAGEMENT ?
Peter Drucker was born on November 19, 1909 in Vienna and
when he died on November 11, 2005, just eight days short of
his 96th birthday, Peter F. Drucker was often described as the
inventor of modern management.
Contemporary Viewpoint
THE SYSTEMS VIEWPOINT
THE CONTINGENCY THEORY (There is no 1 best way)

The contingency viewpoint emphasizes that a

manager’s approach should vary according to—
that is, be contingent on—the individual and the
environmental situation.
A manager subscribing to the Gilbreth approach
might try to get workers to be more productive by
simplifying the steps. A manager of the Theory
X/Theory Y persuasion might try to use motivational
techniques. But the manager following the
contingency viewpoint would simply ask, “What
method is the best to use under these particular
circumstances?”
THE QUALITY MANAGEMENT VIEWPOINT
TOTAL QUALITY MANAGEMENT (TQM)
1. Make continuous improvement a priority. TQM companies are never
satisfied. They make small, incremental improvements an everyday
priority in all areas of the organization. By improving everything a little
bit of the time all the time, the company can achieve long-term
quality, efficiency, and customer satisfaction.
2. Get every employee involved. To build teamwork, trust, and mutual
respect, TQM companies see that every employee is involved in the
continuous improvement process. This requires that workers must be
trained and empowered to find and solve problems.
3. Listen to and learn from customers and employees. TQM companies
pay attention to their customers, the people who use their products or
services. In addition, employees within the companies listen and learn
from other employees, those outside their own work areas.
4. Use accurate standards to identify and eliminate problems. TQM
organizations are always alert to how competitors do things better,
then try to improve on them—a process known as benchmarking.
Using these standards, they apply statistical measurements to their
own processes to identify problems.
THE FUTURE: WHAT IS A LEARNING ORGANIZATION?

A learning organization is like a

lightbulb.
It must be turned on before it
creates value. How do you think
organizations promote the value of
continually learning? Think about your company:
• Is there a clear, strong commitment to
learning?
• Are ideas welcome? Do people know
how / where to submit them?
• Is there a safe environment for people
to come forward and challenge the
status quo?
Let’s rewind and play the movie of the evolution
of organizations
THE EVOLUTION OF SOCIAL ORGANISATIONS
(IMPULSIVE) RED ORGANIZATIONS
(CONFORMIST ) AMBER ORGANIZATIONS
(ACHIEVER) ORANGE ORGANIZATIONS
(PLURALISTIC) GREEN ORGANIZATIONS
(EVOLUTIONARY ) TEAL ORGANIZATIONS
WHAT CHARACTERISTICS MUST HAVE THE LAST 2 ORGANISATIONAL MODELS?

Culture

Technology Engagement
HOW MANY COMPANIES THINK THAT THESE ELEMENTS ARE THE KEY?

Culture

87%
Technology Engagement
HOW MANY COMPANIES HAVE A CLEAR STRATEGY?

Culture

6%
Technology Engagement