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Part I: Introduction
Ch. 2. The evolution of
management
Course outline
Management
Part I: Introduction
Part II: Planning
Part III: Organizing
Part IV: Leading
Part V: Controlling
Part I outline
Management
Part I: Introduction
Learning objectives
After studying this chapter, you should be able to:
Identify several early innovative management practices and
explain the basic evolution of management theories.
Trace the preclassical contributions to the field of management.
Explain the major approaches within the classical viewpoint of
management.
Describe the major developments contributing to the
establishment of the behavioral viewpoint.
Explain the major approaches within the quantitative viewpoint.
Discuss the relevance of systems theory and contingency theory
to the field of management.
Explain how management in Japan influenced the emerging
Theory Z viewpoint of management.
Explain how current knowledge about management is the result
of innovative processes involving many management pioneers.
Chapter 2 outline
A. The major viewpoints
B. Early management
C. The birth of management ideas
D. Classical viewpoint
E. Behavioral viewpoint
F. Quantitative viewpoint
G. Contemporary viewpoints
Classical
viewpoint
Behavioral
viewpoint
Quantitative
viewpoint
Contemporary
viewpoints
Scientific
Management
Early
behaviorists
Management
science
Systems theory
Bureaucratic
Management
Hawthorne
studies
Operations
management
Contingency
theory
Administrative
Management
Human
Relations
movement
Management
information
systems
Emerging
views
Behavioral
science
approach
B. Early management
Early management
Before the Industrial Revolution (England, 18th century).
Beginnings: thousands of years back in time.
2500
BC
2000
BC
1500
BC
1000
BC
500
BC
AD
1
AD
500
AD
1000
AD
1500
Machiavelism
Niccol Machiavelli: The Prince (1513)
An exposition on how to rule successfully by gaining and holding
power.
His comments on the nature of people reflects a set of assumptions
which sounds like an early version of what was much later referred
to as Theory X management.
Cottage industry
Skilled non-agricultural work was performed by craft-workers
who, using relatively simple, all-purpose tools, produced an
entire product, such as a chair or a watch, and sold it directly
to individual consumers.
Cottage industry
Merchants sent material to homes where the families spun, bleached,
or dyed the cloth before returning it to the merchant to sell.
Outline B. Early management Cottage industry
Industrial revolution
First workable steam engine (James Watt):
D. Classical viewpoint
Classical viewpoint
A perspective on management that emphasizes finding ways to
manage work and organizations more efficiently.
Classical
organizational
theory
I. Scientific management
Scientific management
An approach that emphasizes the scientific study of work methods
in order to improve worker efficiency.
Major representatives:
1. Frederick Winslow Taylor [1856-1915]
2. Frank and Lillian Gilbreth [1868-1924 / 1878-1972]
3. Henry Laurence Gantt [1861-1919]
4. Harrington Emerson [1853-1931]
Outline D. Classical viewpoint I. Scientific management
GanttProject (free)
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Outline D. Classical viewpoint I. Scientific management 3. Henry L. Gantt
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Outline D. Classical viewpoint I. Scientific management 3. H.L. Gantt Excel Gantt chart
Max Weber
Contribution
Did not invent the bureaucratic form of
organization, merely described it in detail and
showed why it was superior to previous types of
systems such as monarchies and dictatorships.
Bureaucracy
Bureaucracy
The structure and set of regulations in place to control activity,
usually in large organizations and government.
Characteristics of bureaucracy
Specialization of labor
Jobs are broken down into routine, well-defined tasks so that
members know what is expected of them and can become
extremely competent at their particular subset of tasks.
Impersonality
Rules, procedures, and sanctions are applied uniformly regardless of
individual personalities and personal considerations.
Outline D. Classical viewpoint II. Bureaucratic management Bureaucracy Characteristics
Well-defined hierarchy
Multiple levels of positions, with carefully determined reporting
relationships among levels, provide supervision of lower offices by
higher ones.
Major representatives:
1. Henry Fayol [1841-1925]
Henri Fayol
Henri Fayol [1841-1925]
French industrialist, mining engineer Managing
Director of a large coal and iron company.
Focused on organization-level issues (problems facing
general managers in upper management positions).
1916: General and industrial management
[Administration industrielle et gnrale].
Functions of
management
1. Planning
2. Organizing
3. Commanding
4. Coordinating
5. Controlling
Enterprises
functions
Principles of
management
1. Production
2. Financial
3. Accounting
4. Commercial
5. Security
6. Administrative
[14 principles
within
4 major areas]
Scalar process
A hierarchy of authority.
Span of control
A person could usually only control five or six people.
Authority
The right to give orders and the power to exact obedience.
Discipline
No slacking, bending of rules. The workers should be obedient and
respectful of the organization.
Unity of command
Each employee has one and only one boss.
Unity of direction
A single mind generates a single plan and all play their part in that plan.
Outline D. Classical viewpoint III. Administrative management Henri Fayol Principles
Remuneration
Employees receive fair payment for services, not what the company can get
away with.
Centralization
Consolidation of management functions. Decisions are made from the top.
Order
All materials and personnel have a prescribed place, and they must remain
there.
Outline D. Classical viewpoint III. Administrative management Henri Fayol Principles (2)
Personnel tenure
Limited turnover of personnel. Lifetime employment for good workers.
Initiative
Thinking out a plan and do what it takes to make it happen.
Esprit de corps
Harmony, cohesion among personnel. It's a great source of strength in the
organization. For promoting esprit de corps, the principle of unity of
command should be observed and the dangers of divide and rule and the
abuse of written communication should be avoided.
Outline D. Classical viewpoint III. Administrative management Henri Fayol Principles (3)
E. Behavioral viewpoint
Behavioral viewpoint
Developed as a school of thought in reaction to the cold,
impersonal work place of the Classical viewpoint (Traditional
management - TM).
Traditional management
Focused on technological and structural considerations.
Classical theorists generally viewed individuals as mechanisms of
production. They were primarily interested in finding ways for
organizations to use these productive mechanisms more efficiently.
Dysfunctional consequences of TM:
Job dissatisfaction and low employee motivation.
Displacement of organizational goals.
Labor-management conflict.
Inability to respond to changing conditions.
Customer/client dissatisfaction
Outline E. Behavioral viewpoint
Development:
I. The early behaviorists
II. The Hawthorne studies
III. The Human Relations movement
IV. The more contemporary behavioral science approach
Outline E. Behavioral viewpoint (2)
I. Early behaviorists
Early behaviorists
The first authors that began to offer alternatives to the emphasis on
engineering that characterized the scientific management
approach.
1. Hugo Mnsterberg
1. Hugo Mnsterberg
Hugo Mnsterberg [1863-1916]
German psychologist.
Ph.D. in psychology and a medical degree.
1913: Psychology and industrial efficiency
psychologists could help industry in 3 major
ways:
1. Studying jobs and finding ways of identifying
the individuals who are best suited to
particular jobs.
2. Identifying the psychological conditions under
which individuals are likely to do their best
work.
3. Developing strategies that would influence
employees to behave in ways that are
compatible with management interests.
The father of industrial psychology.
Outline E. Behavioral viewpoint I. Early behaviorists 1. Hugo Mnstergerb
Previous research
Improved lighting led to improved performance.
Ending
A new series of studies were begun in the relay assembly test room.
Outline E. Behavioral viewpoint II. Hawthorne studies 1. The illumination studies
high
productivity
low
high
amount of light reduction
Outline E. Behavioral viewpoint II. Hawthorne studies 1. The illumination studies: Results
Result
Despite all of these changes (even the restrictive ones), the general
trend was for greater output than ever before. The results, like
those of the illumination studies, appeared to make little sense.
Outline E. Behavioral viewpoint II. Hawthorne studies 2. The relay assembly room test
Results
1. Just talking about a problem appeared to act as an emotional release
that seemed to make the workers feel better even though their situation
had not changed.
2. The worker should not be thought of as an isolated individual, but as a
member of a group or groups.
Outline E. Behavioral viewpoint II. Hawthorne studies 3. The interviewing program
Participants
1. Nine wiremen, three solder men, and two inspectors, placed in a special
observation room.
2. An observer who kept records and an interviewer who tried to sense the
workers' attitudes, thoughts, and feelings.
Changes
Wage payments were based on a group incentive plan which rewarded each
worker on the basis of the group's total output.
Results
Workers had a definite notion of a proper day's work - wiring about two
units per day.
The observer was regarded with some distrust.
Outline E. Behavioral viewpoint II. Hawthorne studies 4. The bank wiring room study
Informal organization
Social organization formed by employees to provide the social benefits not
provided by the company's formal organization.
Main contributions
Workers are not so much driven by pay and working conditions as by
psychological needs which can be satisfied by belonging to a work group.
People feel more positive about their work when they have a chance to
participate in decisions regarding that work.
Concern by the supervisor for the workers' needs and recognition of their
contribution to the production process make workers feel more positive
about the organization and more willing to perform at a high level.
Outline E. Behavioral viewpoint II. Hawthorne studies 4. The bank wiring room study
1. Abraham Maslow
2. Douglas McGregor
1. Abraham Maslow
Abraham Maslow [1908-1970]
American, Ph.D. in psychology, chairman of the
psychology department at Brandeis University.
selfactualization
esteem
belongingness
safety
physiological
2. Douglas McGregor
Douglas McGregor [1906-1964]
Ph.D. at Harvard, professor of industrial
management at the Massachusetts Institute of
Technology.
He developed the concept of Theory X versus
Theory Y, a dichotomy dealing with the possible
assumptions that managers make about workers.
These 2 theories describe managers attitudes
towards employees, and not employee behavior!
Theory X assumptions
Theory Y assumptions
Outline E. Behavioral viewpoint III. Human relations movement 2. Douglas McGregor
Theory X assumptions
1. The average person dislikes work and will try to avoid it.
2. Most people need to be coerced, controlled, directed, and
threatened with punishment to get them to work toward
organizational goals.
3. The average person wants to be directed, shuns
responsibility, has little ambition, and seeks security above
all.
Theory Y assumptions
1. Most people do not inherently dislike work; the physical and
mental effort involved is as natural as play or rest.
2. People will exercise self-direction and self-control to reach goals
to which they are committed; external control and threat of
punishment are not the only means for ensuring effort toward
goals.
3. Commitment to goals is a function of the rewards available,
particularly rewards that satisfy esteem and self-actualization
needs.
4. When conditions are favorable, the average person learns not
only to accept but also to seek responsibility.
5. Many people have the capacity to exercise a high degree of
creativity and innovation in solving organizational problems.
6. The intellectual potential of most individuals is only partially
utilized in most organizations.
Outline E. Behavioral viewpoint III. Human relations movement 2. D. McGregor Theory Y
Organizational behavior
Takes a holistic view of behavior by considering individual, group,
and organization processes.
Outline E. Behavioral viewpoint IV. Behavioral science approach
Frederick Herzberg
Frederick Herzberg [19232000]
American psychologist.
2 major contributions:
1. Work enrichment.
2. Two factor theory (Motivator-hygiene theory; 1959).
F. Quantitative viewpoint
Quantitative viewpoint
Focuses on the use of mathematics, statistics, and information aids
to support managerial decision making and organizational
effectiveness.
Operations management
The function, or field of expertise, that is primarily responsible for
managing the production and delivery of an organizations products
and services.
G. Contemporary viewpoints
Contemporary viewpoints
Major innovations in ways of thinking about management.
I. Systems theory
Systems theory
An approach based on the notion that organizations can be
visualized as systems.
System
A set of interrelated parts that operate as a whole in pursuit of
common goals.
Inputs
Transformation processes
Outputs
Feedback
Inputs
The various human, material, financial, equipment, and
informational resources required to produce goods and services.
Transformation processes
The organizations managerial and technological abilities that are
applied to convert inputs into outputs.
Feedback
Information about results and organizational status relative to the
environment.
Outline G. Contemporary viewpoints I. Systems theory Organizational systems components
Inputs
Managerial and
technological abilities:
Planning
Organizing
Leading
Controlling
Technology
Outcomes:
Products and services
Profits and losses
Employee growth and
satisfaction
Transformation
process
Outputs
Open systems
Open system
A system that operates in continual interaction with its
environment.
Closed system
A system that does little or no interacting with its environment and
receives little feedback.
Negative entropy
The ability to bring in new energy, in the form of inputs and
feedback from the environment, in order to delay or arrest entropy.
Differenciation
The tendency of open systems to become more complex.
Synergy
The ability of the whole to equal more than the sum of its parts.
Outline G. Contemporary viewpoints I. Systems theory Open systems Characteristics
Areas of contingency
The contingency approach applies particularly in such areas as:
Environmental factors.
Strategy.
Organizational design.
Technology.
Leadership
Universal view
Same managerial
principles apply to
every situation.
Situation
2
Situation
1
Situation
3
Japanese management
An approach that focuses on aspects of management in Japan that
may be appropriate for adoption in the United States.
Theory Z
Theory Z
A concept that combines positive aspects of American and Japanese
management into a modified approach aimed at increasing US
managerial effectiveness while remaining compatible with the
norms and values of American society and culture.
Theory Z (2)
Type A (American)
Short-term employment
Long-term employment
Individual DM
Consensual decision making
Individual responsibility
Individual responsibility
Rapid evaluation and
Slow evaluation and promotion
promotion
Implicit, informal control with
Explicit, formalized control
explicit, formalized measures
Specialized career path
Moderately specialized career path
Segmented concern
Holistic concern, including family
Type J (Japanese)
Lifetime employment
Consensual DM
Collective responsibility
Slow evaluation and
promotion
Implicit, informal control
Nonspecialized career path
Holistic concern