history of mgt compiled

“Understanding the historical context of management provides a sense of heritage and

can help managers avoid the mistakes of others.”

Ricky W. Griffin Author of Management

Texas A & M University

Influences Having an Impact on Organizations & 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

Management in Antiquity

3000 B.C. 2500 B.C.

A Sumerians F Chinese

B Egyptians

C Babylonians

D Greeks

G Venetians

E Romans

2000 B.C. 1500 B.C. 1000 B.C. 500 B.C. A.D. 1500A.D. 500 A.D. 1000

A Used written rules and regulations for governance

B Used management practices to construct pyramids

C Used extensive set of laws and policies for governance

D Used different governing systems for cities and state

E Used organized structure for communication and control

F Used extensive organization structure for government agencies and the arts

G Used organization design and planning concepts to control the seas

Figure 2.1

Management PerspectivesOver Time

1930Humanistic Perspective

19901890

Classical 1940

2000Systems Theory

2010The Technology-Driven Workplace

2010The Learning Organization

1970Contingency Views

1980Total Quality Management

1940Management Science Perspective

Classical Perspective Three Sub-Fields

ScientificBureaucratic OrganizationsAdministrative Principles

Scientific Management

• Frederick Taylor– System for placing order into production process– Study people like machines– Find the simplest & best way– Train the people

Example – Bethlehem Steel

• Studies the layout of the plant

• Studies activities of workers

• Specifically looks at loading & unloading of steel

Findings

• Productivity increased

• Incentive pay was a factor

• Jobs simplified

• People were trained

Steps in Scientific Management

Develop a sciencefor each element ofthe job to replace oldrule-of-thumb methods

Scientifically selectemployees and thentrain them to do the jobas described in step 1

Supervise employeesto make sure theyfollow the prescribedmethods for performingtheir jobs

Continue to plan the work, but use workers to get the work done

Figure 2.2

Characteristics of Scientific Management

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.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

• Labor is divided with clear definitions of authority and responsibility.

• Positions are in hierarchy of authority.• Personnel are selected and promoted based on

qualifications.• Management is separate from the ownership.• Rules and procedures ensure reliable, & predictable

behavior.• Rules are impersonal and uniformly applied.

SOURCE: Adapted from Max Weber, The Theory of Social and Economic Organizations, ed. and trans. A.M. Henderson and Talcott Parsons (New York: Free Press, 1947), 328-337.

Bureaucratic Theory

• Max Weber – modeled after German government• 6 principles

– Jurisdictional areas– Hierarchy & levels of authority– Official documents– Thorough & expert training– Requires full time work– Management follows the rules

Implications of a bureaucracy

• Rules insure fairness

• Bad image

• Speed & motivation problems

Weber was misunderstood

• He really believed that a rational organization would (and should) reward competence.

Administrative principles - Mary Parker Follett

• Employee ownership leads to collective responsibility• Business problems must be viewed in relationship to

other problems• Profits should be considered in the context of the

public good

Henri Fayol

• Administrative management• Identified mgt. Functions

– Planning– Organizing– Leading– Controlling

Henri Fayol’s 14 Points

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

Hawthorne Studies

• Elton Mayo• 1927 – 1932• Hawthorne plant of West. Elec.• Productivity Experiment

Illumination Studies

• Vary light in the room

• Control vs. experiment group

• What happened to productivity?

• What does that mean?

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

Hawthorne is now considered to be the beginning of the “humanistic approach” or human relations.

Maslow’s Hierarchy of Needs

• Physiological• Safety• Social • Esteem• Self-actualization

Physiological

Safety

Belonging

Esteem

Self-actualization

Abraham Maslow’s Hierarchy

Based on needs satisfaction

Organizational Examples

Challenging Job

Job Title

Friends

Retirement Plan

General Examples

Self-fulfillment

Status

Friendship

Stability

Shelter

2 Others You Should Know

• McGregor’s Theory X & Theory Y

• Argyris’s Theory of Adult Personality

• 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

Douglas McGregorTheory X & Y

Theory X Theory Y

Now There is Theory Z

• Based on the Japanese model of management• Long-term employment• Career planning & development• Teamwork• Two-way loyalty• Consensus decision making

Behavioral Sciences Approach

• Develops theories about human behavior based on scientific methods & study

• Sub-field of the Humanistic Perspective• Applies social science in an organizational context• In understanding employees draws from

economics, psychology, sociology

Management Science Perspective

• Emerged after WW II• Distinguished for its application of mathematics,

statistics to problem solvingOperations Research emergedOperations Management emergedInformation Technology

Three Contemporary Trends

Systems Theory Contingency View Total Quality

Management (TQM) Managers need certain core skills and basic understanding of management and leadership if they plan to operate within

a TQM System. This site has several core modules.

Systems Theory Principles

• Define company as a system• Establish objectives• Identify wider systems• Create formal subsystems• Integrate subsystems with the whole

The Systems Perspective of Organizations

Inputs from theenvironment:material inputs,human inputs,financial inputs, andinformation inputs

Transformationprocess: technology,operating systems,administrativesystems, andcontrol systems

Outputs intothe environment:products/services,profits/losses,employee behaviors,and informationoutputs

Feedback

Figure 2.3

Systems View

Contingency Theory

• Fred Fielder

• Believed in Situational Leadership• No single approach is best• The best is contingent upon the situation

Contingency View

Quantitative Approaches

• Management science or operations management• If a problem exists or a decision is to be made use:

– Linear Programming– Modeling– Simulation– Forecasting

Learning Organization

“An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.”

Elements of a Learning Organization

Learning Organization

Open Information

Empowered Employees

Team-Based

Structure

Features:

Examine & challenge scared cowsStructures designed for testingPotentially negative messages – don’t shoot the messengerExhibit new capabilitiesIs your knowledge qualitatively different – “value added”Is knowledge accessible – knowledge is power

An Integrative Framework ofManagement Perspectives

Systems Approach• Recognition of internal

interdependencies• Recognition of

environmental influences

Contingency Perspective• Recognition of the situational

nature of management• Response to particular

characteristics of situation

ClassicalManagementPerspectivesMethods forenhancingefficiency andfacilitating planning,organizing, andcontrolling

BehavioralManagementPerspectivesInsights for moti-vating performanceand understandingindividual behavior,groups and teams,and leadership

QuantitativeManagementPerspectivesTechniques forimproving decisionmaking, resourceallocation, andoperations

Effective and efficient management

Figure 2.4

Types of E-Commerce

Business-to-Consumer B2C

Selling Products andServices Online

Business-to-Business B2B

Transactions Between

Organizations

Consumer-to-Consumer C2C

Electronic Markets Created by Web-Based

Intermediaries

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