EVOLUTION OF MODERN MANAGEMENT

U.S. INDUSTRIAL REVOLUTION

POWER GENERATION TRANSPORTATION COMMUNICATION

SCIENTIFIC MANAGEMENT
FREDERICK TAYLOR HENRY GANTT FRANK & LILLIAN GILBRETH

FREDERICK TAYLOR TIME STUDY STANDARDS FOR WORK JOB SPECIALIZATION MANAGERIAL PLANNING & CONTROL OF WORK WORKER SELECTION & TRAINING INCENTIVES HENRY GANTT GANTT CHARTS MODIFIED INCENTIVES INCENTIVES FOR FOREMEN

FRANK & LILLIAN GILBRETH MOTION STUDIES (Therbligs) FATIGUE REDUCTION SUGGESTION SYSTEMS

SCIENTIFIC MANAGEMENT
ASSUMPTIONS Productivity is a workplace problem Managers should plan and direct the work of others Individuals are economically motivated CONTRIBUTIONS Scientific study of work (Time & Motion) Setting of work standards Use of incentives Careful selection & training of workers Division of labor---managers & workers Productivity & efficiency increased LIMITATIONS Social needs of workers overlooked Many studies werent very scientific Loss of self-control alienated workers Group dynamics were ignored

MANAGEMENT
A FORM OF WORK THAT INVOLVES COORDINATING AN ORGANIZATIONS RESOURCES TOWARD ACCOMPLISHING ORGANIZATIONAL OBJECTIVES

MANAGEMENT FUNCTIONS
PLANNING ORGANIZING COMMANDING COORDINATING CONTROLLING

(H FAYOL)

MANAGEMENT PRINCIPLES
DIVISION OF LABOR (Specialization) UNITY OF COMMAND (Only one boss) SCALAR CHAIN OF COMMAND (Hierarchy of Authority) SPAN OF CONTROL (Number of subordinates supervised)

WEBERS BUREAUCRACY
DIVISION OF LABOR
HORIZONTAL SPECIALIZATION

HIRARCHY OF AUTHORITY
VERTICAL SPECIALIZATION

FORMAL RULES & PROCEDURES

ENFORCED, DOCUMENTED

TECHNICAL COMPETENCE
SELECTION & PROMOTION CRITERIA

IMPERSONAL TREATMENT
NO FAVORITISM

CENTRALIZED DECISION-MAKING
UNIFORM CONTROL

ADMINISTRATIVE THEORY
ASSUMPTIONS THERE IS AN IDEAL WAY TO STRUCTURE THE ORGANIZATION AND TO ADMINISTER THE MANAGEMENT PROCESSES NECESSARY FOR ORGANIZATIONAL SUCCESS MANAGEMENT SKILLS ARE GENERALIZABLE CONTRIBUTIONS FUNCTIONS & PRINCIPLES OF MANAGEMENT THE IDEAL BUREAUCRACY RAISED AWARENESS OF BASIC PROBLEMS LIKELY TO BE FOUND IN ANY ORGANIZATION LIMITATIONS STRESSED A ONE-BEST-WAY OF MGMT & ORGANIZATION THEORIES BASED ON OBSERVATION & INTUITION RATHER THAN EMPIRICAL INVESTIGATION PRINCIPLES NOT APPLICABLE TO ORGANIZATIONS WHICH EXIST IN TURBULENT ENVIRONMENTS

HAWTHORNE PLANT AT WESTERN ELECTRIC

MAYO & ROETHLISBERGER ILLUMINATION EXPERIMENTS RELAY ASSEMBLY TESTS INTERVIEWING MICA SPLITTING BANK WIRING ROOM DISCOVERIES HAWTHORNE EFFECT CATHARSIS INFORMAL GROUP POWER

HUMAN RELATIONS MANAGEMENT

ASSUMPTIONS
WORKERS ARE MOTIVATED BY SOCIAL NEEDS SATISFIED WORKERS ARE PRODUCTIVE WORKERS EMPHASIS ON WORKER NEEDS AND MOTIVATION HAWTHORNE EFFECT.ATTENTION GIVEN TO WORKERS HAS AN IMPACT ON THEIR BEHAVIOR INFLUENCE OF THE INFORMAL GROUP MANAGERS NEED STRONG SOCIAL SKILLS HAPPY, SATISFIED WORKERS ARENT NECESSARILY PRODUCTIVE ECONOMIC ISSUES DO AFFECT WORKER PRODUCTIVITY BORING WORK ISNT LESS SO WITH A FRIENDLY SUPERVISORMOTIVATION IS STILL A PROBLEM WORKERS FEEL SUPERVISOR INTEREST IN THEM ISNT GENUINETHEYRE BEING MANIPULATED! SHOULD BUSINESS BE RESPONSIBLE FOR MEETING ALL HUMAN NEEDS ON THE JOB?

CONTRIBUTIONS

LIMITATIONS

TRANSITION TO HUMAN RESOURCES

DOUGLAS MCGREGOR
THEORY X THEORY Y

FREDERICK HERZBERG
TWO-FACTOR MOTIVATION THEORY HYGIENES MOTIVATORS JOB ENRICHMENT

THEORY X
THE AVERAGE HUMAN BEING:
DISLIKES WORK AND WILL AVOID IT MUST BE COERCED/CONTROLLED TO ACHIEVE OBJECTIVES PREFERS DIRECTION WISHES TO AVOID RESPONSIBILITY HAS LITTLE AMBITION WANTS SECURITY ABOVE ALL

THEORY Y
THE AVERAGE HUMAN BEING:
BELIEVES WORK IS AS NATURAL AS PLAY PREFERS SELF-DIRECTION/CONTROL TO ACHIEVE OBJECTIVES WILL ACCEPT AND SEEK OUT RESPONSIBILITY PREFERS TO EXPAND IMAGINATION/CREATIVITY IN WORKPLACE SOLUTIONS

HUMAN RESOURCES MANAGEMENT

ASSUMPTIONS
INTERESTING WORK MOTIVATES INTRINSICALLY WORKERS ARE TRUSTWORTHYGIVE THEM RESPONSIBILITY THE MANAGERS JOB IS TO CHALLENGE WORKERS & TO DEVELOP THEIR TALENTS THEORY X AND THEORY Y PARTICIPATIVE DECISION-MAKING AND MANAGEMENT JOB REDESIGN AND JOB ENRICHMENT MANAGEMENT BY OBJECTIVES MORE RIGOROUSLY-TESTED THEORIES

CONTRIBUTIONS

LIMITATIONS
NOT EVERYONE WANTS A CHALLENGING JOB BEHAVIOR IS COMPLEXTHEORIES HAVE MANY EXCEPTIONS ELEGANT THEORIES MAKE LITTLE SENSE TO MANAGERSA LACK OF ACCEPTANCE PROBLEM

QUANTITATIVE MANAGEMENT APPROACHES

MANAGEMENT SCIENCE DuPONT (CPM) Critical Path Method US NAVY (PERT) Program Evaluation and Review Technique OPERATIONS RESEARCH WORLD WAR II -- England QUALITY ASSURANCE STATISTICS Stresses the use of mathematical models to aid in managerial decisionmaking

SYSTEMS VIEWS
SEES THE BIG PICTURE IN ORGANIZATIONS STRESSES EXTERNAL ENVIRONMENT INFLUENCES HOW THE PARTS RELATE TO EACH OTHER TO CREATE THE WHOLE HOW TO LINK UNITS TOGETHER HARMONIOUSLY SO THAT AN EFFICIENT SYSTEM EMERGES (INTEGRATION) INPUTS TRANSFORMATION PROCESSES OUTPUTS FEEDBACK
CLOSED vs OPEN SYSTEMS SUBSYSTEMS

** DONT MAKE ORGANIZATIONAL DECISIONS UNTIL YOU UNDERSTAND THE WHOLE SYSTEM

CONTINGENCY VIEWS
THERE IS NO ONE BEST WAY TO MANAGE
THERE ARE NO UNIVERSAL PRINCIPLES OF MANAGEMENT

ANALYZE THE SPECIFIC SETTING & CIRCUMSTANCES

CAREFULLY STUDY THE SITUATIONKEEP YOUR EYES OPEN

FIND THE APPROACH THAT BEST FITS THE SITUATION

DONT FOLLOW FADSIT ALL DEPENDS

EMPHASIZE DIAGNOSIS AND FLEXIBILITY

MANAGERS MUST LEARN TO BE FLEXIBLE

TYPE A, J, and Z ORGANIZATIONS

OUCHI (80)

TYPE A ORGANIZATION

(American)

SHORT-TERM EMPLOYMENT RAPID EVALUATION & PROMOTION HIGHLY SPECIALIZED CAREERS INDIVIDUAL DECISION-MAKING AND INDIVIDUAL RESPONSIBILITY EXPLICIT, FORMAL CONTROLS, SEGMENTED CONCERN

TYPE J ORGANIZATION

(Japanese)

LIFETIME EMPLOYMENT SLOW EVALUATION & PROMOTION NONSPECIALIZED CAREER PATH CONSENSUAL DECISION=MAKING, COLLECTIVE RESPONSIBILITY IMPLICIT, INFORMAL CONTROLS, HOLISTIC CONCERN

TYPE Z ORGANIZATION

(Modified American)

LONG-TERM EMPLOYMENT SLOW EVALUATION & PROMOTION MODERATELY SPECIALIZED CAREERS CONSENSUAL DECISION-MAKING, INDIVIDUAL RESPONSIBILITY IMPLICIT, INFORMAL CONTROLS, HOLISTIC CONCERN A CLEAR ORGANIZATIONAL PHILOSOPHY

JAPANESE MANAGEMENT MODELS

HATVANY & PUCIK (81)

STRATEGIES
1. 2. 3. DEVELOPMENT OF AN INTERNAL (CLOSED) LABOR MARKET EMPLOYEE-ORIENTED, COOPERATIVE COMPANY PHILOSOPHY CAREFUL SOCIALIZATION & DEVELOPMENT OF PERSONNEL

SPECIFIC TECHNIQUES USED

JOB ROTATION SLOW EVALUATION & PROMOTION GROUP & TEAM EMPHASIS OPEN, FACE-TO-FACE COMMUNICATIONS CONSULTATIVE DECISION-MAKING INTIMATE EMPLOYEE CONCERN

KEYS TO SUCCESSFUL APPLICATION

1. 2. 3. 4. ARTICULATE A COMPANY PHILOSOPHY PROVIDE LONG TENURE PRACTICE JOB ROTATION PRACTICE CONSULTATIVE DECISION-MAKING

IN SEARCH OF EXCELLENCE
PETERS & WATERMAN (82)

A BIAS TOWARD ACTION

JUST DO IT.KILL THE SNAKE, DONT STUDY IT TO DEATH!

CLOSENESS TO THE CUSTOMER

CUSTOMER DRIVEN DECISION-MAKING

AUTONOMY & ENTREPRENEURSHIP

STRUCTURED TO ENCOURAGE INNOVATION & CHANGE

PRODUCTIVITY THROUGH PEOPLE

PARTICIPATION AND CONSENSUS STRESSED

HANDS ON, VALUE DRIVEN

THE VISION & MISSION OF THE ORGANIZATION ARE CLEAR AND KNOWN TO EVERYONE WITHIN THE FIRM. LEADERS/MANAGERS ARE WILLING TO GET INVOLVED IN PROBLEMS AT ALL LEVELS.

STICKING TO THE KNITTING

STAY FOCUSED ON WHAT YOU DO BEST

SIMPLE FORM, LEAN STAFF

KEEP STRUCTURES SIMPLE AND LEAN

SIMULTANEOUS LOOSE-TIGHT PROPERTIES

KEEP TIGHT CONTROL ON THE FIRMS CORE VALUES STAY FLEXIBLE ELSEWHERE

TOTAL QUALITY MANAGEMENT (TQM)

Focuses on managing the total organization to deliver quality to customers. Requires a shift from an inspection-oriented approach to employee involvement in the prevention of quality problems. EMPLOYEE INVOLVEMENT
TRAIN, INVOLVE, EMPOWER WORKERS

1.

2.

FOCUS ON THE CUSTOMER

FIND OUT WHAT THE CUSTOMER WANTS

3.

BENCHMARKING
COMPARE PRODUCTS/SERVICES WITH COMPETITORS

4.

CONTINUOUS IMPROVEMENT
SMALL, INCREMENTAL IMPROVEMENTS ALL THE TIME

CONTEMPORARY ORGANIZATIONAL BEHAVIOR

INTERDISCIPLINARY FOCUS
PSYCHOLOGY SOCIOLOGY POLITICAL SCIENCE

MOSTLY DESCRIPTIVE OF RELATIONSHIPS BETWEEN VARIABLES

IMMATURITY OF THE FIELD COMPLEXITY OF STUDYING BEHAVIOR LACK OF VALID, RELIABLE MEASURES

SYSTEMS ARE STRESSED

ORGANIZATIONS ARE A SET OF INTERRELATED ELEMENTS THAT FUNCTION AS A WHOLE

CONTINGENCY PERSPECTIVE
THERE ARE NO UNIVERSAL PRINCIPLES WE MUST STUDY THE SITUATION / SETTING TO FIND THE BEST SOLUTION

MANAGEMENT CHALLENGES TODAY

PARADIGM SHIFTS
CHANGING PRODUCTS & TECHNOLOGIES SHIFTS IN WAYS OF THINKING AND MANAGING

CHAOS THEORY
THE ENVIRONMENT IS NOT PREDICTABLE LEARN TO BE FLEXIBLE AND ADAPTABLE

WORKPLACE DIVERSITY
CHANGING LABOR FORCE

GLOBALIZATION
INTERNATIONAL COMPETITION

THE NEW (LEARNING) ORGANIZATION

STRONG ON VISION AND CULTURAL VALUES EMPOWERED WORKERS NEW STRUCTURES NEW CAREER PATHS