Download EVOLUTION OF MANAGEMENT

EVOLUTION OF MANAGEMENT
CHAPTER 2
• Studying history is a way to achieve strategic thinking, see the
big picture and improve conceptual skills.
• Social, political and economic forces have influenced
organizations and the practice of management.
1) Social forces
– Refer to those aspects of a culture that guide and influence
relationships among people.
2) Political forces
– Refer to the influence of political and legal institutions on
people and organizations.
3) Economic forces
– Pertain to the availability, production and distribution of
resources in a society.
Management Perspectives over
Time
1)
2)
3)
4)
5)
6)
7)
8)
Management Perspectives over
Time
Classical Perspective
– Scientific Management
– Bureaucratic Organization
– Administrative Principles
Humanistic Perspective
– Human Relations Movement
– Human Resources Perspective
– Behavioral Sciences Approach
Management Science Perspective
Systems Theory
Contingency View
Total Quality Management
The Learning Organization
The Technology-Driven Workplace
Classical Perspective
• The earliest study of management
• Emerged during the nineteenth and early
twentieth centuries
• Contains 3 subfields, each with a slightly
different emphasis:
1) Scientific management
2) Bureaucratic organizations
3) Administrative principles
1) 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
Frederick W. Taylor
The “father” of scientific management
• The theory of scientific management
– Using scientific methods to define the “one
best way” for a job to be done:
• Putting the right person on the job with the
correct tools and equipment.
• Having a standardized method of doing the job.
• Providing an economic incentive to the worker.
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
Management Today
• How Do Today’s Managers Use Scientific
Management?
– Use time and motion studies to increase
productivity
– Hire the best qualified employees
– Design incentive systems based on output
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
Characteristic of Scientific
Management
• General Approach
– Developed standard method for performing each
job
– Selected workers with appropriate abilities for
each job
– Trained workers in standards methods
– Supported workers by planning their work and
eliminating interruptions
– Provide wage incentives to workers for increased
output.
• Contributions
– Demonstrated the importance of compensation
for performance
– Initiated the careful study of tasks and jobs
– Demonstrated the importance of personnel
selection and training
• Criticism
– Did not appreciate the social context of work and
higher needs of workers
– Did not acknowledge variance among individuals
– Tended to regard workers as uninformed and
ignored their ideas and suggestions
1. Scientific management theory arose in part
from the need to increase productivity.
2. In the united states especially, skilled labor
was in short supply at the beginning of the
twentieth century.
3. The only way to expand the productivity was
to raise the efficiency of workers.
4. Therefore ,Fredick W.Taylor,Henry Gantt,and
Frank and Lillian Gilberth devised the body of
principles known as Scientific management
theory
2) Bureaucracy Organizations
• A systematic approach developed in Europe
that looked at the organization as a whole.
• During the late 1800s, many European
organizations were managed on a personal,
family-like basis.
• The weaknesses of this management style was
that resources were used to realize individual
desires rather than organizational goals.
2) Bureaucracy Organizations
• Bureaucracy is the combined organizational
structure, procedures, protocols, and set of
regulations in place to manage activity, usually
in large organizations.
• it is often represented by standardized
procedure (rule-following) that guides the
execution of most or all processes within the
body; formal division of powers; hierarchy;
and relationships, intended to anticipate
needs and improve efficiency.
2) Bureaucracy Organizations
To Weber, a bureaucracy was a rational, efficient
ideal organization based on principles of logic—he
felt good organizations should have six
bureaucratic features:
1.
2.
3.
4.
5.
6.
Positions organized in a hierarchy of authority
Managers subject to rules and procedures that will ensure
reliable predictable behavior
Management separate from the ownership of organization
Administrative acts and decisions recorded in writing
Personnel selected and promoted based on technical
qualifications
Division of labor, with clear definitions of authority and
responsibility.
3) Administrative Management
Administrative
Management:
concerned with managing
the total organization
Among the pioneering theorists were
Henry Fayol & Max Weber
Henry Fayol and the Functions
of Management
Henry Fayol was the first to systematize management behavior – he was
the first to identify the major functions of management: planning, organizing,
leading, controlling, as well as coordinating and commanding.
•Management philosophy:
• Unity of command – Each subordinate receives orders from one – and
only one – superior
•Division of work – Managerial and technical work are amenable to
specialization to produce more and better work with the same amount of
effort.
•Unity of Direction – Similar activities in an organization should be
grouped together under one manager.
•Scalar chain – A chain of authority extends from the top to the bottom
of the organization and should include every employee.
Humanistic Perspective
•Emphasized the importance of understanding
human behaviors, needs and attitudes in the
workplace as well as social interactions and group
processes.
1) The Human Relations Movement
Proposed that better human relations could
increase worker productivity.
One of the earliest to study motivation, Maslow
proposed his “hierarchy of human needs” in
1943.
Maslow’s Hierarchy of Needs
2) Human Resources Perspective
• Maintained an interest in worker participation
and considerate leadership but shifted the
emphasis to consider the daily tasks that
people perform.
• Combines prescriptions for design of job tasks
with theories of motivation.
• This will allow workers to use their full
potential.
Theory X
• Pessimistic negative view
towards workers
• Workers are irresponsible
• Workers are resistant to
change
• Workers lack ambition,
hate to work
• Workers would rather be
led than lead
Theory Y
• Optimistic positive view of
workers: human relations
proponents’ view
• Workers are capable of
accepting responsibility
• Workers are capable of selfdirection
• Workers are capable of selfcontrol
• Workers are capable of being
imaginative and creative
3) Behavioral Science Approach
Behavioral Science
relies on scientific
research for developing
theories about human
behavior that can be used
to provide practical tools
for managers.
Behavioral Science draws
from sociology,
psychology, anthropology,
economics and other
disciplines to understand
employee behavior and
interaction in an
organizational setting.
Management Science
Perspective
•
Management Science
focuses on using
mathematics to aid in problem
solving and decision making.
• Suitable for large scale
business firms.
• Example: forecasting,
inventory modeling, linear and
nonlinear programming,
scheduling and break-even
analysis.
Recent Historical Trends
• There are 2 recent trends that grew out of the
humanistic perspective:
1) Systems Theory
2)Contingency View
The Systems Theory
The Systems Theory
regards the organization as a
system of interrelated parts
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
environment
Input
The people, money,
information, equipment
and materials
required to produce
and organization’s
goods or services
Example: For a jewelry
designer- designer
money, artistic talent,
gold and silver tools,
marketing expertise
Transformational
Process
The organization’s
capabilities in
management and
technology that are
applied to converting
inputs to outputs
Example: Designer’s
management skills
(planning, organizing,
leading, controlling) gold
and silver smithing tools
and expertise, website for
marketing
Output
The products, services,
profits, losses,
employee satisfaction
or discontent, and the
like that are produced
by the organization
Example: Gold and silver
rings, bracelets, etc.
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
OPEN AND CLOSED SYSTEMS
Open System
continually interacts
with its environment
Closed System has
little interaction with its
environment; it receives
very little feedback from
the outside
The Contingency View
– The Contingency View
emphasizes that a manager’s
approach should vary according
to—that is, be contingent on—the
individual and the environmental
situation
– Also sometimes called the
situational approach.
– There is no one universally
applicable set of management
principles (rules) by which to
manage organizations.
– Organizations are individually
different, face different situations
(contingency variables), and
require different ways of
managing.
Question
• Based on your experience at work or school,
describe some ways in which the principles of
scientific management and bureaucracy are
still used in organizations. Do you believe
these characteristics will ever cease to be a
part of organizational life? Discuss.