jones global mgt ch02.ppt

8/10/2019 jones global mgt ch02.ppt

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The Evolution of

Management

Thought

chapter two


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Learning Objectives

1. Describe how the need to increase organizationalefficiency and effectiveness has guided theevolution of management theory

2. Explain the principle of job specialization anddivision of labor, and tell why the study of person-task relationships is central to the pursuit ofincreased efficiency

3. Identify the principles of administration andorganization that underlie effective organizations

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Learning Objectives

4. Trace the change in theories about how managers

should behave to motivate and control employees

5. Explain the contributions of management science to

the efficient use of organizational resources

6. Explain why the study of the external environment

and its impact on an organization has become a

central issue in management thought

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The Evolution of Management Theory

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Figure 2.1


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Job Specialization and

the Division of Labor

Adam Smith (18th century economist)

Observed that firms manufactured pins in one of

two different ways:

Craft-styleeach worker did all steps.

Productioneach worker specialized in one step.

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Smith found that the performance of the

factories in which workers specialized in only

one or a few tasks was much greater than the

performance of the factory in which each

worker performed all pin-making tasks

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Job Specialization

process by which a division of labor occurs as

different workers specialize in specific tasks over

time

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F.W. Taylor and Scientific Management

Scientific Management

The systematic study of the relationships between

people and tasks for the purpose of redesigning

the work process to increase efficiency.

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Problems with Scientific Management

Managers frequently

implemented only the

increased output side

of Taylors plan.

Workers did not share

in the increased

output.

Specialized jobs

became very boring,

dull.

Workers ended up

distrusting the

Scientific

Management method.

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The Gilbreths

1. Analyze every individual action necessary to

perform a particular task and break it into each of

its component actions

2. Find better ways to perform each component action3. Reorganize each of the component actions so that

the action as a whole could be performed more

efficiently-at less cost in time and effort

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Administrative Management

Theory

Administrative

Management

The study of how to

create anorganizational

structure that leads to

high efficiency and

effectiveness.

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Administrative Management Theory

Max Weber

Developed the principles of bureaucracy as a

formal system of organization and administration

designed to ensure efficiency and effectiveness.

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Webers Principles of Bureaucracy

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Figure 2.2


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Rules, SOPs and Norms

Rules

formal written instructions that specify actions to betaken under different circumstances to achievespecific goals

Standard Operating Procedures (SOPs)

specific sets of written instructions about how toperform a certain aspect of a task

Norms unwritten, informal codes of conduct that prescribe

how people should act in particular situations

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Fayols Principles of Management

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Table 2.1


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Behavioral Management Theory

Behavioral Management

The study of how managers should personally

behave to motivate employees and encourage

them to perform at high levels and be committedto the achievement of organizational goals.

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Behavioral Management

Mary Parker Follett

Concerned that Taylor ignored the human side of

the organization

Suggested workers help in analyzing their jobs

If workers have relevant knowledge of the task, then

they should control the task

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The Hawthorne Studies

and Human Relations

Studies of how characteristics of the work

setting affected worker fatigue and

performance at the Hawthorne Works of the

Western Electric Company from 1924-1932.

Worker productivity was measured at various

levels of light illumination.

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and Human Relations

Human Relations Implications

Hawthorne effect workers attitudes toward

their managers affect the level of workers

performance

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and Human Relations

Human relations movement

advocates that supervisors be behaviorally trained

to manage subordinates in ways that elicit their

cooperation and increase their productivity

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and Human Relations

Behavior of managers and workers in the work

setting is as important in explaining the level

of performance as the technical aspects of the

task

Demonstrated the importance of understanding how

the feelings, thoughts, and behavior of work-group

members and managers affect performance

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and Human Relations

Informal organization

Thesystem of

behavioral rules and

norms that emerge ina group

Organizational

behavior

The study of the

factors that have animpact on how

individuals and groups

respond to and act in

organizations.

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Theory X and Theory Y

Douglas McGregor proposed two different sets

of assumptions about workers.

Theory X

A set of negative assumptions about workers that

leads to the conclusion that a managers task is to

supervise workers closely and control their

behavior.

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Theory X and Theory Y

Theory Y

A set of positive assumptions about workers that

leads to the conclusion that a managers task is to

create a work setting that encouragescommitment to organizational goals and provides

opportunities for workers to be imaginative and

to exercise initiative and self-direction.

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Theory X vs. Theory Y

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ExampleDave Packard

As HP grew, Dave Packard recognized that

everyone wanted to do a good job

He walked around listening to everyone

HP also established an open-door policy

allowing employees to discuss any issue

without fear of reprisal

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http://www.hp.com/


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Management Science Theory


Contemporary approach to management that

focuses on the use of rigorous quantitative

techniques to help managers make maximum useof organizational resources to produce goods and

services.

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Quantitative management

utilizes mathematical techniques, like linear

programming, modeling, simulation and chaos

theory

Operations management

provides managers a set of techniques they can

use to analyze any aspect of an organizationsproduction system to increase efficiency

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Total quality management

focuses on analyzing an organizations input,

conversion, and output activities to increase

product quality

Management information systems

help managers design systems that provide

information that is vital for effective decisionmaking

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Organizational Environment Theory

Organizational Environment

The set of forces and conditions that operate

beyond an organizations boundaries but affect a

managers ability to acquire and utilize resources

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The Open-Systems View

Open System

A system that takes resources for its external

environment and transforms them into goods and

services that are then sent back to thatenvironment where they are bought by

customers.

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The Organization as an Open

System

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Input stage

organization acquires resources such as raw

materials, money, and skilled workers to produce

goods and servicesConversion stage

inputs are transformed into outputs of finished goods

Output stage finished goods are released to the external

environment

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Closed system

A self-contained system that is not affected by

changes in its external environment.

Likely to experience entropy and lose its ability tocontrol itself

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Synergy

the performance gains that result from the

combined actions of individuals and departments

Possible only inan organized system

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Contingency Theory

Contingency Theory

The idea that the organizational structures and

control systems manager choose are contingent

on characteristics of the external environment inwhich the organization operates.

There is no one best way to organize

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Contingency Theory

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Figure 2.5


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Type of Structure

Mechanistic Structure

An organizational structure in which authority is

centralized, tasks and rules are clearly specified,

and employees are closely supervised.

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Type of Structure

Organic Structure

An organizational structure in which authority is

decentralized to middle and first-line managers

and tasks and roles are left ambiguous toencourage employees to cooperate and respond

quickly to the unexpected

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Video Case: The Assembly Line

What downside do you think workers

experienced after Taylor helped Ford introduce

job specialization in his factory? Think of an

example from the video.How does a moving assembly line fit into the

beliefs of a Theory X

manager, a designationgiven to Henry Ford?

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jones global mgt ch02.ppt

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