Management s Connection To Other Fields

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1 Management s Connection To Other Fields Subjects look as if independent body of knowledge Lack connectedness bet. humanities and social science Mgt. comes from these areas Anthropology - study of societies human & activities, culture, environ. Economics - allocation and dist. Of scare Resources, competition, Philosophy - nature of things esp. values & Ethics. Political science - behavior of people in political sys. Psychology - science that seeks to measure explain and change behavior Sociology - study of people in relation to fellow human beings.

2 HISTORICAL BACKGROUND Management not new Pyramid Project (Mega) - one pyramid took 20 years employed 100,000 people ~ who told each worker what to do?? ~ who ensured enough stones to site?? Managers (may be with diff. name) 1776 Adam Smith (Wealth of Nations) org. + society will gain from division of labor breakdown of jobs into narrow, repetitive tasks (job specialization) improved productivity. Industrial Revolution ~ introduction of factories, machine (power, mass production. Require managers to organize work, forecast demand ensure enough materials on-hand, assign tasks to people, ensure machines in good working condition, etc.

3 DEVELOPMENT OF MANAGEMENT THEORIES Characterized by differing beliefs about what managers do and how they shoud do it. 4 main theories / approaches Scientific Mgt. - looked from perspective of improving productivity and efficiency of workers General Administrative Theory - concern with overall organization and how to make it more effective Quantitative approach - develop and apply quantitative models to mgt. Practices Organizational behaviorists - emphasised human behavior in organization

4 BUREAUCRACY ~ A form of org. characterized by division of labor, clearly defined hierarchy, detailed rules and regulations and impersonal relationships ~ Contemporary mgrs feed bureaucracy takes away creativity, flexibility, ability to respond fast in today s environment ~ But, GE, CISCO still use it, and needed to ensure resources used efficiently & effectively.

5 FOYAL S 14 PRINCIPLES OF MANAGEMENT 1. Division of work. Specialization increases output by making employees more efficient. 2. Authority. Managers must be able to give orders. Authority gives them this right. Along with authority, however, goes responsibility. 3. Discipline. Employees must obey and respect the rules that govern the organization. 4. Unity of command. Every employee should receive orders from only one superior. 5. Unity of direction. The organization should have a single plan of action to guide managers and workers. 6. Subordination of individual interests to the general interest. The interests of anyone employee or group of employees should not take precedence over the interests of the organization as a whole. 7. Remuneration. Workers must be paid a fair wage for their services. 8. Centralization. This term refers to the degree to which subordinates are involved in decision making. 9. Scalar chain. The line of authority from top management to the lowest ranks is the scalar chain. 10. Order. People and materials should be in the right place at the right time. 11. Equity. Managers should be kind and fair to their subordinates. 12. Stability of tenure of personnel. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. 13. Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort. 14. Esprit de corps. Promoting team spirit will build harmony and unity within the organization.

6 Principles of Scientific Management 1. Develop a science for each element of an individual s work, which will replace the old rule-of-thumb method. 2. Scientifically select and then train, teach and develop the worker. (Previously, workers chose their own work and trained themselves as best they could.) 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers. (Previously, almost all the work and the greater part of the responsibility were thrown on the workers.) Frederick Taylor Father of Scientific Management Frank and Lillian Gilbreth - studied work to eliminate wasteful hand-and-body motion, design and use of proper tools and equipment for optimizing work performance Frank - best known for his experiments in bricklaying, carefully analyzing the bricklayer's job, he reduced the number of motions in laying exterior brick more productive and less fatigued at the end of the day. use motion pictures to study hand-and-body motions developed Therblig Symbols for hand motions grasp, Transport empty, etc.

7 WEBERS S IDEAL BUREAUCRACY Managers are career professionals, not owners of units they manage Career Orientation Jobs broken down into simple, routine and welldefined tasks Division of Labor Authority hierarchy Positions organized in a hierarchy with a clear chain of command A bureaucracy should have Impersonality Formal Rules and Regulation Formal Selection Uniform application of rules and controls, not according to personalities System of written rules and standard operating procedures People selected for jobs based on technical qualifications

8 Actual manager who thought organizations were social systems that required cooperation. Believed manager s job was to communicate and stimulate employee s high levels of effort First to argue that organizations were open system. Concerned about deplorable working conditions. Proposed idealistic workplace Argued that money spent improving labor was smart Created field of industrial psychology scientific study of people at work Suggested using psychological tests for employee selection, learning theory concepts for employee training, and study of human behavior for employee motivation. Robert Owen Late 1700s Chester Bernard 1930s Early Advocates of OB Hugo Munsterberg Early 1900s Mary Parker Follett Early 1900s One of the first to recognize that organizations could be viewed from perspective of individual and group behavior Proposed more people-oriented ideas than scientific management followers Thought organizations should be based on group ethic

9 QUANTITATIVE APPROACH ~ Operations Research (OR) Management Science (MS) Mathematics + Statistics OR/MS Optimization, computer simulations to improve resource allocation, work scheduling, critical path, inventory control, process analysis, etc. Not widely practiced by management graduates

10 ORGANIZATIONAL BEHAVIOR Manage Work & People Focus on human resources (look at MGT) Org. behavior ~ actions of people at work HRM, motivation, leadership, trust (from OB research) Ideas by early advocates Hawthorne Studies (CLASSIC) Series of studies at Western Elec. In Cicero, Illinois, by IEs. Obj : to examine effect of diff. illumination levels on worker productivity - Control group ~ constant intensity - Expt. Group ~ exposed diff. levels intensity.

11 If you are one of the IE what would you expect? Output α Intensity of light?? Results Lights Both groups improved productivity individuals Then lights at expt. group prdtvt. also increased in both groups. something else have contributed to the increase Elton Mayo ~ role of human behavior ~ group influences have sig. effect indv. behavior ~ group standards est. indv. worker output ~ led to new emphasis on human behavior factor in functioning and attainment of goals.

12 CURRENT TRENDS & ISSUE Changing way managers do things Globalization McD sells burger in China, India, Japan, Malaysia Workforce Diversity heterogeneous gender, race, ethnic, age other charac. More accomodating org. Entrepreneurship - changing, innovating, revolutionizing E-business, e-commerce Quality Management Learning org. & knowledge

13 Chap2MgtTheories