2-1 chapter 2 the evolution of management theory
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2-1
Chapter 2
The Evolution of Management Theory
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Learning Objectives
1. Identify and explain major developments in the history of management thought.
2. Describe and compare scientific management, administrative management and behavioral management theories.
3. What role does contingency play in organizations?
4. Explain the importance of the external environment in management theories.
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Evolution of Management Theory
Social Forces … values, needs, and standards of behavior. – Family versus Work
Political Forces … influence of political and legal institutions on people & organizations –government systems, capitalism
Economic Forces … forces that affect the availability, production, & distribution of a society’s resources. Machines replacing labor, technology
Influences on Management Practice
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Late 1800s to 1940 Emphasized a rational, scientific approach to
the study of management. Sought to make organizations efficient.
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Scientific Management Pioneered by Frederick Taylor Standard of living is low and production is labor intensive at
the beginning of this period Developed precise, standardized procedures for doing each job Focused on efficiency – “one best way to do the job” Used wage incentive plans. Workers earn higher pay –
management higher profits. Emphasized selecting workers based on abilities and training
workers
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Scientific Management Frank and Lillian Gilbreth
Studied fatigue caused by lighting, heating and design of tools and machines
Time and Motion studies (often filmed workers performing tasks)
• Broke up each job action into its components• Sought better ways to perform the task• Reorganize job action to be more efficient
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Administrative principles What comes to mind when you hear the
word “bureaucracy?” Max Weber developed five principles of
bureaucracy in GermanyDesigned to ensure efficiency and
effectiveness in organizations
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Administrative principles Max Weber’s principles:
Manager’s authority derives from position in organization
People should be given position because of performance
Each position’s responsibility and authority should be clearly defined
Clearly specified hierarchy of authority System of rules and standard operating procedures
which specify how employees should behave.
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Administrative principles Henri Fayol’s 14 Principles of Management Still the foundation for much of management theory of
today Some notable mentions of principles
Manager’s informal authority from expertise, moral worth and ability to lead
Unity of command Important to limit the length of the chain of command Managers should allow employees to be innovative
and creative Equity to all organizational members Esprit de Corps
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Behavioral Management Theory
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.
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Behavioral Management Theory Mary Parker Follett Scientific management approaches ignored human
side of organization Management should involve workers in finding
better ways to perform tasks Knowledge and expertise should be deciding factor
in who should lead – not manager’s formal authority Precursor to self-managed teams
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Behavioral Management Theory“Managers get things done through people”
Western Electric Company’s Hawthorn Studies (1920s)– Elton Mayo
Started from studies looking at how amount of illumination affected productivity – found that productivity increased in control and experimental groups
Numerous experiments performed on wage incentives, job design, etc. over a decade found that positive treatment of employees had more influence on group productivity.
Money isn’t the only motivator – group norms, standards New emphasis on “human factor” in management
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People are lazy People lack ambition Dislike responsibility People are self-
centered People don’t like
change
People are energetic People want to make
contributions People do have
ambition People will seek
responsibility
Theory X & Y – Douglas McGregor
Theory X Theory Y
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The Contingency ApproachThere is no one best way to organize.
Situations are unique. There are no universal principles of management.
Managers search for key contingencies – important patterns and characteristics
for organizations to be effective, there must be a “goodness of fit” between their structure and the conditions in their external environment.
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Work centered around information and ideas
Work is often virtual
Characteristics of theNew Workplace
Economic Forces
Globalization of markets
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Characteristics of theNew Workplace
Social Forces
Coordination of Family and Work
Increased Longevity of Workers – Multi-generationsCultural Diversity of Workers
Social Responsibility
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