history of mgt compiled
TRANSCRIPT
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
“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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Management PerspectivesOver Time
1930Humanistic Perspective
19901890
Classical 1940
1950
2000Systems Theory
2000
2010The Technology-Driven Workplace
1990
2010The Learning Organization
1970Contingency Views
2000
1980Total Quality Management
2000
1940Management Science Perspective
1990
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Classical Perspective Three Sub-Fields
ScientificBureaucratic OrganizationsAdministrative Principles
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Scientific Management
• Frederick Taylor– System for placing order into production process– Study people like machines– Find the simplest & best way– Train the people
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Example – Bethlehem Steel
• Studies the layout of the plant
• Studies activities of workers
• Specifically looks at loading & unloading of steel
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Findings
• Productivity increased
• Incentive pay was a factor
• Jobs simplified
• People were trained
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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
21 43
Figure 2.2
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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.
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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.
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Implications of a bureaucracy
• Rules insure fairness
• Bad image
• Speed & motivation problems
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Weber was misunderstood
• He really believed that a rational organization would (and should) reward competence.
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Henri Fayol
• Administrative management• Identified mgt. Functions
– Planning– Organizing– Leading– Controlling
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Hawthorne Studies
• Elton Mayo• 1927 – 1932• Hawthorne plant of West. Elec.• Productivity Experiment
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Illumination Studies
• Vary light in the room
• Control vs. experiment group
• What happened to productivity?
• What does that mean?
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Hawthorne is now considered to be the beginning of the “humanistic approach” or human relations.
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Maslow’s Hierarchy of Needs
• Physiological• Safety• Social • Esteem• Self-actualization
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Physiological
Safety
Belonging
Esteem
Self-actualization
Abraham Maslow’s Hierarchy
Based on needs satisfaction
Organizational Examples
Challenging Job
Job Title
Friends
Retirement Plan
Wages
General Examples
Self-fulfillment
Status
Friendship
Stability
Shelter
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
2 Others You Should Know
• McGregor’s Theory X & Theory Y
• Argyris’s Theory of Adult Personality
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
• 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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Management Science Perspective
• Emerged after WW II• Distinguished for its application of mathematics,
statistics to problem solvingOperations Research emergedOperations Management emergedInformation Technology
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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.
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Systems Theory Principles
• Define company as a system• Establish objectives• Identify wider systems• Create formal subsystems• Integrate subsystems with the whole
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Systems View
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Contingency Theory
• Fred Fielder
• Believed in Situational Leadership• No single approach is best• The best is contingent upon the situation
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Contingency View
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Quantitative Approaches
• Management science or operations management• If a problem exists or a decision is to be made use:
– Linear Programming– Modeling– Simulation– Forecasting
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Learning Organization
“An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.”
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
Elements of a Learning Organization
Learning Organization
Open Information
Empowered Employees
Team-Based
Structure
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
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