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 Views 1950 2000 Systems Theory 2000 1940 Management Science Perspective 1930 1990 Humanistic Perspective 1890 1990 Classical 1940 1870 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 2010 2010 2010 2

Classical Perspective Scientific Management Bureacratic Administrative Classical Perspective

CLASSICAL PERSPECTIVE Management - Chapter 2 4

Scientific Management Scientific Management Studies and tests methods to identify the best, most efficient ways Seat-of-the Pants Management No standardization of procedures No follow-up on improvements

Scientific Management: Taylor 1856-1915 General Approach Developed standard method for performing each job. Selected workers with appropriate abilities for each job. Trained workers in standard method. Supported workers by planning work and eliminating interruptions. Provided wage incentives to workers for increased output. 6

Frederick W. Taylor Frederick W. Taylor 1856-1915 Frederick Taylor is known today as the "father of scientific management." One of his many contributions to modern management is the common practice of giving employees rest breaks throughout the day.

Frank & Lillian Gilbreth Frank and Lillian Gilbreth were prolific researchers and often used their family as guinea pigs. Their work is the subject of Cheaper by the Dozen, written by their son and daughter.

Charts: Henry Gantt

Bureaucratic Management Bureaucracy The exercise of control on the basis of knowledge, expertise, or experience. Max Weber 1864-1920

Max Weber 1864-1920 Prior to Bureaucracy Organizations European employees were loyal to a single individual rather than to the organization or its mission Resources used to realize individual desires rather than organizational goals Systematic approach looked at organization as a whole Bureaucracy Organizations Ethical Dilemma: The Supervisor 11

Bureaucracy Organizations Personnel are selected and promoted based on technical qualifications Division of labor with Clear definitions of authority and responsibility Positions organized in a hierarchy of authority Administrative acts and decisions recorded in writing Management separate from the ownership of the organization Managers subject to Rules and procedures that will ensure reliable predictable behavior Exhibit 2.3, p. 49 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 12

Administrative Principles Contributors: Henri Fayol, Mary Parker, and Chester I. Barnard Focus: Organization rather than the individual Delineated the management functions of planning, organizing, commanding, coordinating, and controlling 13

Henri Fayol 1841-1925 14 General Principles of Management Division of labor Authority Discipline Unity of command Unity of direction Subordination of individual interest Remuneration Centralization Scalar chain Order Equity Stability and tenure of staff Initiative Esprit de corps 14

Importance of common super-ordinate goals for reducing conflict in organizations Popular with businesspeople of her day Overlooked by management scholars Contrast to scientific management Reemerging as applicable in dealing with rapid change in global environment Leadership importance of people vs. engineering techniques Mary Parker Follett 1868-1933 Ethics - Power - Empowerment 15

Informal Organization Cliques Naturally occurring social groupings Acceptance Theory of Authority Free will Can choose to follow management orders Chester Barnard 1886-1961 16

Humanistic Perspective Human Relations Movement Human Resources Perspective Behavioral Sciences Approach Humanistic Perspective

Emphasized satisfaction of employees basic needs as the key to increased worker productivity Human Relations Movement 18

Hawthorne Studies: Elton Mayo Workers feelings and attitudes affected their work Financial incentives weren t the most important motivator for workers Group norms and behavior play a critical role in behavior at work

Suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential Human Resource Perspective 20

Abraham Maslow s Hierarchy of Needs 1908-1970 Self-actualization Esteem Belongingness Chapter 16 Maslow in more detail Safety Physiological Based on needs satisfaction 21

Douglas McGregor Theory X & Y 1906-1964 Theory X Assumptions Dislike work will avoid it Must be coerced, controlled, directed, or threatened with punishment Prefer direction, avoid responsibility, little ambition, want security Theory Y Assumptions Do not dislike work Self direction and self control Seek responsibility Imagination, creativity widely distributed Intellectual potential only partially utilized 22

Behavioral Sciences Approach Sub-field of the Humanistic Management Perspective Applies social science in an organizational context Draws from economics, psychology, sociology, anthropology, and other disciplines Understand employee behavior and interaction in an organizational setting OD Organization Development 23

Management Science Perspective Emerged after WW II Applied mathematics, statistics, and other quantitative techniques to managerial problems Operations Research mathematical modeling Operations Management specializes in physical production of goods or services Information Technology reflected in management information systems 24

Recent Historical Trends Systems Theory Contingency View Total Quality Management (TQM)

Systems View of Organizations Exhibit 2.5, p. 58 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 26

Contingency Management Contingency Approach Holds that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.

Management is harder than it looks Managers need to look for key contingencies that differentiate today s situation from yesterday s situation Managers need to spend more time analyzing problems before taking action Pay attention to qualifying phrases, such as usually Contingency Management

Elements of a Learning Organization Team-Based Structure Empowered Employees Learning Organization Open Information Exhibit 2.7, p. 61 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 29

In the 21 st century, managers must be: Global strategists Masters of technology Inspiring leaders Models of ethical behavior Management - Chapter 2 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 30