evolution 2

The Evolution of Management Thinking : 

The Evolution of Management Thinking Chapter 2

Management Perspectives Over Time : 

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

INDUSTRIAL REVOLUTIONMid 1700 saw shift from cottage industry( family business / production) to factory system which lead to industrial revolution.CHARACTERISTICS:1. Specialization: Division of Labor2. Standardization: Standard norms are set for production and quality . Identical goods were produced in million of units.3. Synchronization: It helps in coordination and blending of all elements at one place. : 

INDUSTRIAL REVOLUTIONMid 1700 saw shift from cottage industry( family business / production) to factory system which lead to industrial revolution.CHARACTERISTICS:1. Specialization: Division of Labor2. Standardization: Standard norms are set for production and quality . Identical goods were produced in million of units.3. Synchronization: It helps in coordination and blending of all elements at one place.

4. Concentration: People were taken from farms and other isolated places and concentrated at the location of factories . : 

4. Concentration: People were taken from farms and other isolated places and concentrated at the location of factories .

Classical Perspective : 

Classical Perspective Economic rationality of employees, people are motivated by economic incentives, 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 and scientific method for performing each job. Selected workers scientifically with appropriate abilities for each job. Trained workers in standard method. Supported workers by planning work and eliminating interruptions so that work is done scientifically. Provided wage incentives to workers for increased output.

GILBERTH (1878-1972)Time and Motion study – Improve upon time and motion elements of operations by eliminating unnecessary actions.HENRY L GANTT(1861-1991)Taylor supported mechanistic view while gannt supported a more humanistic approach .It is management’s responsibility to provide them training. : 

GILBERTH (1878-1972)Time and Motion study – Improve upon time and motion elements of operations by eliminating unnecessary actions.HENRY L GANTT(1861-1991)Taylor supported mechanistic view while gannt supported a more humanistic approach .It is management’s responsibility to provide them training.

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 Systematic approach –looked at organization as a whole Rigid formal organizational structure with set rules and regulations. Strict adherence to rules and regulations 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 Seperation of personal lives From organizational Positions. 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

Slide 12: 

Division of labor Authority & responsibility 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

Slide 13: 

BEHAVIOURAL MANAGEMENT: The study of how managers should behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals. Focuses on the way a manager should personally manage to motivate employees. MARY PARKER FOLLETT: She believed that instead of preparing and training managers to give orders they should be trained to work with employees. Power should be jointly developed in a cooperative manner.

ELTON MAYO: : 

ELTON MAYO: Hawthorne experiments showed Better physical environment or increased economic benefits were not sufficient motivators in increasing productivity Emphasis shifted to psychological and social forces in addition to economic forces.

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

Theory X and Theory Y : 

Theory X and Theory Y Douglas McGregor proposed the two different sets of assumptions about workers. Theory X assumes the average worker is lazy, dislikes work and will do as little as possible. Managers must closely supervise and control through reward and punishment. Theory Y assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work. Managers should allow workers greater latitude, and create an organization to stimulate the workers.

Slide 17: 

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

Slide 18: 

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

Slide 19: 

An approach to management that uses rigorous quantitative techniques to maximize the use of organizational resources. Quantitative management—utilizes linear programming, modeling, simulation systems. Operations management—techniques to analyze all aspects of the production system. Total Quality Management (TQM)—focuses on improving quality throughout an organization. Management Information Systems (MIS)—provides information about the organization. Management Science Theory

Slide 20: 

Contingency Theory Contingency Theory The idea that the organizational structures and control systems manager choose depend on—are contingent on—characteristics of the external environment in which the organization operates. Assumes there is no one best way to manage. The environment impacts the firm and managers must be flexible to react to environmental changes. In rapidly changing organizational environments, managers must find ways to coordinate different departments to respond quickly and effectively.

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

Human Resource Perspective : 

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

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