Management

The Evolution of Management Thinking : 

The Evolution of Management Thinking Chapter 2

New Approach to Management : 

New Approach to Management Success accrues to those who learn how To be leaders To Initiate change To participate in and create organizations with fewer managers With less hierarchy that can change quickly

Management and Organization : 

Management and Organization Management philosophies and organization forms change over time to meet new needs Some ideas and practices from the past are still relevant and applicable to management today

Historical Perspective : 

Historical Perspective Provides a context or environment Develops an understanding of societal impact Achieves strategic thinking Improves conceptual skills Social, political, and economic forces have influenced organizations and the practice of management

Forces Influencing Organizations and Management : 

Forces Influencing Organizations and Management Social Forces - values, needs, and standards of behavior Political Forces - influence of political and legal institutions on people & organizations Economic Forces - forces that affect the availability, production, & distribution of a society’s resources among competing users

Management Perspectives Over Time : 

Management Perspectives Over Time 2010 1870 Exhibit 2.1, p.44

Classical Perspective: 3000 B.C. : 

Classical Perspective: 3000 B.C. Rational, scientific approach to management – make organizations efficient operating machines Scientific Management Bureaucratic Organizations Administrative Principles

Scientific Management: Taylor 1856-1915 : 

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.

Scientific Management : 

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

Bureaucracy Organizations : 

Bureaucracy Organizations 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 Ethical Dilemma: The Supervisor

Bureaucracy Organizations : 

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

Administrative Principles : 

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

Henri Fayol 1841-1925 : 

Henri Fayol 1841-1925 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 General Principles of Management

Mary Parker Follett 1868-1933 : 

Mary Parker Follett 1868-1933 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 Ethics - Power - Empowerment

Chester Barnard 1886-1961 : 

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

Humanistic Perspective : 

Humanistic Perspective Emphasized understanding human behavior, needs, and attitudes in the workplace Human Relations Movement Human Resources Perspective Behavioral Sciences Approach

Human Relations Movement : 

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

Hawthorne Studies : 

Hawthorne Studies Ten year study Four experimental & three control groups Five different tests Test pointed to factors other than illumination for productivity 1st Relay Assembly Test Room experiment, was controversial, test lasted 6 years Interpretation, money not cause of increased output Factor that increased output, Human Relations

Human Resource Perspective : 

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

Slide 20: 

Physiological Safety Belongingness Esteem Self-actualization Abraham Maslow’s Hierarchy of Needs Based on needs satisfaction 1908-1970

Slide 21: 

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

Douglas McGregor Theory X & Y : 

Douglas McGregor Theory X & Y Few companies today still use Theory X Many are trying Theory Y techniques Experiential Exercise: Theory X and Theory Y Scale

Behavioral Sciences Approach : 

Behavioral Sciences Approach 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 Sub-field of the Humanistic Management Perspective

Management Science Perspective : 

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

Recent Historical Trends : 

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

Systems View of Organizations : 

Systems View of Organizations Exhibit 2.5, p. 58

Contingency View of Management : 

Contingency View of Management Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand

Elements of a Learning Organization : 

Elements of a Learning Organization Learning Organization Open Information Empowered Employees Team-Based Structure Exhibit 2.7, p. 61

Types of E-Commerce : 

Types of E-Commerce Business-to-Consumer B2C Selling Products and Services Online Business-to-Business B2B Transactions Between Organizations Consumer-to-Consumer C2C Electronic Markets Created by Web-Based Intermediaries Exhibit 2.8, p. 63