Management Yesterday and Today. Chapter Outline

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1 hapter Two Management Yesterday and Today Chapter Outline Historical background of management Scientific management Taylor, Frank and Gilbreth General administrative theorists Fayol Max Weber Quantitative approach to management Toward understanding organizational behavior Early advocates of OB The Howthorne studies 1

2 Chapter Outline (cont d) The systems approach The contingency approach Current trends and issues Globalization ethics Workforce diversity Managing in e-business world Knowledge management and learning organizations Quality management Historical background of management Early examples of management The pyramids The Venice Division of labor Adam Smith Industrial revolution 2

3 Management Theory Classical Perspective Humanistic Perspective Contemporary Trends Scientific Management General Management Bureaucratic Organizations Human Relations Movement Human Resources Perspective Behavioral Sciences Approach Management Perspectives Over Time 1990 The Learning Organization 1980 Total Quality Management 2010 Contingency Views 1970 Systems 1940 Management Science Classical 1890 Humanistic

4 Classical Perspective Emphasized a rational, scientific approach to the study of management Sought to make organizations efficient Classical Perspective Three Sub-Fields Scientific Management Bureaucratic Organizations Administrative Principles 4

5 Classical Sub-Field(1) Scientific Management the father of scientific management Frederick W.Taylor 1911, The Principles of Scientific Management Working at Midvale Steel Company, Taylor witnessed many inefficiencies, he sought to create a mental revolution among both workers and managers by defining clear guidelines for improving production efficiency. Classical Sub-Field(1) Scientific Management Taylor s 4 principles of management 1. Develop a science for each element of an individual work, which will replace the old rule-of-thumb method 2. Scientifically select and then train, teach, and develop the worker 3. Heartily cooperate with the workers so as to ensure all work is done in accordance with the principles of science 4. Divide work and responsibility equally between management and workers. 5

Initiated the careful study of tasks and jobs. Demonstrated the importance of personnel and their training.

6 Is scientific management totally scientific? Any constraints? Classical Sub-Field(1) Scientific Management Contributions Demonstrated the importance of compensation for performance. Initiated the careful study of tasks and jobs. Demonstrated the importance of personnel and their training. Criticisms Did not appreciate 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. 6

7 Essence workers Scientific revolution managers Classical Sub-Field(1) Scientific Management Frank and Lillian Gilbreth Known for the experiments in bricklaying Used motion pictures to study handand-body motions Devised a classification scheme to lable 17 basic hand motions called therbligs 7

8 Classical Sub-Field(2) General Administrative Theory the father of modern management Henri Fayol Described the practice of management as something distinct from accounting finance, production etc. Management was an activity common to all human endeavors in business, government and even in the home 1908, 14 principles of management Delineating the management functions of planning, organizing, commanding, coordinating, and controlling Henri Fayol s 14 Principles of Management Division of labor Centralization Authority Scalar chain Discipline Order Didn t mention the Unity of command Equity interrelationship Unity of direction among the 14 points Stability and tenure Subordination of of staff individual interest for Initiative common good Esprit de corps Remuneration 8

9 Classical Sub-Field(3) Bureaucratic Organizations the father of organization theory Max Weber He developed a theory of authority structures and relations called bureaucracy The features of the ideal bureaucratic structure Career Orientation Inpersonality Division of Labor A bureaucracy should have Authority Hierarchy Formal Selection Formal Rules and Regulations 9

10 Characteristics of Traditional Management Bureaucratic Scientific Administrative Characteristics Rules Impersonality Division of labor Hierarchy Authority structure Lifelong commitment Rationality Characteristics Training routines and rules One best way Financial motivation Characteristics Defining of management functions Division of labor Hierarchy Authority Equity Focus Whole organization Benefits Consistency Efficiency Drawbacks Rigidity Slowness Focus Worker Benefits Productivity Efficiency Drawbacks Overlooks social needs Focus Manager Benefits Clear structure Rules Drawbacks Doesn t consider environment Overemphasizes managers behavior Quantitative approach Important contributions Evolved out of the development of mathematical and statistical solutions to military problems Involves applications of statistics, optimization models, information models and computer simulations Today s use Making budgeting Scheduling Quality control Similar decisions 10

11 Humanistic Perspective Emphasized understanding human behavior Dealt with needs & attitudes in the workplace Truly effective control comes from within the individual worker rather than authoritarian control Hawthorne Studies brought this perspective to forefront Humanistic Perspective Three Sub-Fields Human Relations Movement Human Resources Perspective Behavioral Sciences Approach 11

12 Humanistic Sub-Field(1) Human Relations Movement Early advocates Robert Owen Hugo Munsterberg(p33.) George Elton Mayo and his Hawthorne Studies ten years study Four experimental & three control groups Five different test Humanistic Sub-Field(1) Human Relations Movement Mayo concluded Behavior and attitudes are closely related Group influences significantly affect individual behavior Group standards establish individual worker output money is a less factor in determining output than are group standards, group attitudes and security 12

13 Humanistic Sub-Field(2) Human Human Resources Perspective Combines design of job tasks with theories of motivation. Maintains an interest in worker participation. Considers the daily tasks that people perform. Abraham Maslow s Need Theory General Examples Self-fulfillment Self-actualization Organizational Examples Challenging Job Status Esteem Job Title Friendship Belonging Friends Stability Shelter Safety Physiological Retirement Plan Wages Based on needs satisfaction 13

14 Douglas McGregor Theory X & Y Theory X People are lazy People lack ambition Dislike responsibility People are selfcentered People don t like change Theory Y People are energetic People want to make contributions People do have ambition People will seek responsibility Humanistic Sub-Field(3) Behavioral Sciences Approach Develops theories about human behavior based on scientific methods & study Sub-field of the Humanistic Perspective Applies social science in an organizational context In understanding employees draws from economics, psychology, sociology 14

15 Contemporary Trends Management Science System Theory Contingency View Management Science Perspective Emerged after WW II Distinguished for its application of mathematics, statistics to problem solving Operations Research emerged Operations Management emerged Management Information Systems emerged 15

The systems approach The organization as an open system Inputs Transformation process Outputs The systems approach and managers Managers coordinate the work activities of the

16 The systems approach The organization as an open system Inputs Transformation process Outputs The systems approach and managers Managers coordinate the work activities of the various part of the organization Decisions and actions taken in one organizational area will affect others The organizations are not self-contained The Organization as an Open System 16

The contingency approach Organizations are different, face different situations, and require different ways of managing Popular contingency

17 The contingency approach Organizations are different, face different situations, and require different ways of managing Popular contingency variables Organization size Routineness of task technology Environmental uncertainty Individual differences Contingency Theory of Organizational Design 17

18 Current trends and issues Globalization ethics Workforce diversity Entrepreneurship Managing in e-business world Knowledge management and learning organizations Quality management Interacting Elements In A Learning Organization Open Information n Leadership n n Participative Strategy LEARNING ORGANIZATION Empowered Employees n n Team-Based Structure n Strong, Adaptive Culture 18

19 学习型组织与传统型组织的比较 Attitude towards change Attitude towards new opinion Who is responsible for innovation concerns Source of advantage Responsibility of managers Learning organization Must Ready to accept Every member not learn Learning ability, knowledge and techniques impower Traditional organization If it works now, not a must not always ready to accept R&D mistake Products and services control Discussion Can a quantitative or mathematical technique help a manager solve a people problem such as how to motivate employees or how to distribute work equitably? Explain. Would you feel more comfortable in a learning organization or in a traditional organization? Why? 19

Chapter 2 THE HISTORY OF MANAGEMENT

Chapter 2 THE HISTORY OF MANAGEMENT Management Perspectives Over Time Exhibit 2.1, p.44 2000 The Technology-Driven Workplace 1990 The Learning Organization 1980 Total Quality Management 2000 1970 Contingency