Scribd Logo
Upload

Welcome to Scribd!

  • DocScanner Sep 6, 2023 11-29 PM

    Uploaded by

    Tiruveedula Rishendra
    14 views7 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    14 views7 pages

    DocScanner Sep 6, 2023 11-29 PM

    Uploaded by

    Tiruveedula Rishendra

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 7
    APPENDIX A The Evolution of Management For thousands of years, managers have wrestled with the ‘same issues end problems contronting execuves today, ‘Around 1100 BC, the Chinese practiced the four management functons—planaing. organizing, leading, and cortroling— ‘ecussed in Chapter 1. Between 400 BC and 350 BC, tne (Greeks recogrized management as a separate art and advo: ‘cated a scentie approach to work. The Romans cecentralized, the management of ther vast empire before the orth of Christ. Dureg medieval tmes, the Venetians standardized production trough the use of an assembly Ine, buling warehouses and sing en inventory system to moniter tre contents” ut throughout history, most manage’s operated strictly fon a tiahand-error basis, The challenges of the Industrial Revolution changed that. Management emerged as a fot: imal dscpline at the turn of the century The fist unversty programs to otter management ane business education, the Warton School at the University of Pennsytvania and the ‘Amos Tuck Senool st Dartmouth, were founded in the late 19tn cemury By 1914, 25 business schools existed? Thus, the management profession as we know it today Is relatvely new This appencix explores the roots of modem management theory. Understanding the origins of manage- iment thought will help you grasp the uncerlying conten of the ideas and concepts presentea in the chapters ahead ‘Atnough ths aopendix's tiled “The Evolution ef Manage: ert! t might be more appropriately called “The Revolutions (of Management” because it documents tne wee suings in management eparsacnes over the past 100+ years. Out of the great vanety of iceas about how to improve management, [pans of each approacn have survived and been incorporated Ima madern perspectives on management. Thus, te legacy of past fons, earnphs, end failures has become our guide 10 future management practice? Sore ‘The Evolution of Management Thought EARLY MANAGEMENT CONCEPTS AND INFLUENCES, Communication and transportation constraints hindered, the growth of earlier businesses. Therefore, improvements In management techniques did not substantally improve performance. However, the Industrial Revolution changed That. As companies grew and became mare complex. minor Improvements in management tactics produced impressive Increases in production quantity and quality The emergence of economies of scale—reductions in tne average cost of a unit of production as the total volume produced increases—drove managers to stive for further ‘growtn The opportunties for mass production crested by the Industrial Revolution spawned intense and systematic thought about management problems and issues—partculary fefficiency, production processes, and cost savings Exhibit At provides a time line depicting the evolution fof manegement thought through the decades. This historical Perspective is Gwvided into two major sections: classical ‘Bpproaches and contemporary approaches. Many of these ‘approaches overlapped as they Ceveloped, and they often had a significant impact on one ancther. Some approaches were a direct reaction to the perceived deficiencies of previous epproscnes. Others developed as the needs and Issues corttontng managers cranged over the years. Al the approsches attempted to exclain the real issues fecing managers and provide them wth toois to solve future problems. Exhibit A1 wil reinforce your understanding of tnd key relationships among the approaches and place each perspective in its historical context. CLASSICAL APPROACHES ‘The dassical period extended from the mic-t&th century througn the early 1850s. The major approsches that ‘emerged during this period were systematic management, Classical approaches Contemporary approaches 1800 1920 1940 1960 1980 2000 2020 2080 Sram! presacy | [UR] management Pureeverscy | ‘management | Siete Admiborsive | Human management | “management telations Scientific management, administiative managanient, Hora Felations, and bureaucracy. Systematic Management During the 18h contr. rout INUS. business centered on manufacturing © Early writers suct 235 Adom Smith beleved the management ofthese fms wi chaote, and their eas helped to systemotze le Most ogo Zational tasks were subdivided ahd! performed by specloeed labor. However poor coordination caused tequet problem land breakdowns ofthe manufactur process The systematic management saproach attempted td bud speeiie proceautes and processes Ino operation, to ensure coordination of etfor. Systematic menagement emphasized economical operations, equate nafngh maintenance of inventories to meet consumer demand, rf frgonizational contol. These goals were achieves through} \ Cereful definition of duties and responsibilities ‘Standardized techniques for performing these duties, Specific means of gathering, handling, tansmitng, analyzing information | Cost accounting, wage, and production control systems toacitate internal coordination and communtetons ee The following rules, taken from the records of Cocheco Company, were typical of labor contract provisions in the 1850s, 4. The hours of work shall be from sunrise to sunset, from the 21st of March to the 20th of September inclusively. and from sunrise unt eight octock, pm. during the remainder of the year One hour shall be alowed for dinner, and half an hour for bbrealfast during the fist mentioned six months; ‘and one hour for dinner during the ether half of the year; on Saturdays, the mil shall be stopped one: hour before sunset, for the purpose of clearing the machinery. 2. Every hand coming to work a quarter of an hour after the mi has been started shall be docked a ‘quarter ofa day, and every hand absenting him or herself, without absolute necessity, shall be docked in a sum double the amount ofthe wages such hand shall have earned during the tme of ‘such absence, No more than one hands alowed toleave any one of the rooms at the same time—a ‘quarter of a day shall be deducted for every breach ofthis rule 2. No smoking or spritous hquors shall be allowed Inthe factory under any pretense whatsoever Itis ‘also forbidden to cary into the foctory, nuts, ruts, ete. books, oF papers during the hours of work. Sulvan W, "The Indust Revelation onthe Factory Operate | ria" Fhe Peonyione Mogaue of Har on Barony 78 | 1988) 59.478-79. Jecnuse managers were concerned primarily with moet! ng the explosive growl In demand brought sou by Industrial Revolution, In addition, managers wore free td focus on internal Issues of efficiency, in part because thd {Qovernment id not contain utiosspactcossigneoty, Final labor wns poo organized As atest ny mon ‘15 were crented mare toward things than tov pple Sslematic management oid nol acess atthe sue sircentury monogers faced but te to raise monogers pworeness abot he most pressing concen of tra Sclentitie Management Systematic management fed 0 led to widespread pradueton ellen. This shorteom ng became apparent to 8 young engnees named Feder ayo, who wos hited Dy Midvale Stee! Compary In 1870) avor discovered that producion and pay Were Poor let iciency and waste were prevalent, and most companies iad remendous unused potenol He conclude that manage fecsions were unsystematic and that no research to deter ine the best means of production ovsted Insesponse,Tayorlntoduced a second eporonch to man) gement own as scletite management’ Ths opprooel /vocated the eppication of scent methods to analy rk and to determine how to complete prsucton tose clon. For example, US. Steels contact wth the United Steel Workers of America spoceg tht sand shovels Should move 125 shovels per minute, shovels should petge $8 ound of er end composed of 55 percent mroisture® Taylor identified four principles of scientific management; 1 ‘ Systematié Management emphislaed Inoinal operating Management should develop a precise, scientific ‘approach for each element of ones work to replace ‘general guidelines. i | 2, Management should scientifically select, train, teach, {and develop each worker so thatthe right person hes the Hight job ‘3, Management should cooperate with workers to ensur that obs match plans and principle. 4, Management should ensure an approptite division work and responsibilty between manogers and workers, To implement this pprouch, Tair used technique ‘Buch as time-and-motion studies. With this technique, a tas brs ved ino ts bale movernent and diferent ton Greve timed to detemine te most cent voy to complet ihe ts | [Sater the ‘one best way to perarm he Jo wos Ken ied, Teorsrssed the mponence of fing end ban] Ing th proper worker o do hat ob. Tyo avocatd Oa Fandarantion of too, the use of nsvucion cogs o hes frees and ores lo amma fog | [anther ay element of Taylors pproach waste use of {ne deren pecerate system Tar exsumed worerd freve motivated by receNingmonoy. Therefore, he imp ented poy eytem neh werkes wero pad attond fags wn hy enced sv ov of x 33 Fredenck Tylor ft and DDeLitan Gibret(igna were ‘early expen in management ticeney. Bemenicety Images EEG ea ‘At the turn of the century, automobiles were @ luxury that only the weslthy could afford, They were ‘assembled by craftspeople who put an entire car together at one spot on the factory floor. These workers were not specialized, ang Henry Ford believed they wasted time and energy bringing the ‘needed parts to the car Fotd took a revolutionary approach to automobile manufacturing by using scientific management principles. ‘After much study, machines and workers in Ford's new factory were placed in sequence so that an ‘automobile could be assembled without interruption ‘along a moving production line. Mechanical energy and a conveyor belt were used to take the work to the workers. ‘The manufacture of pars likewise was revolutionized, For example, formerly it had taken one worker 20 minutes to assemble @fiywhieel magneto, By spiting the job into 29 operations, putting the product on @ ‘mechanical conveyor, and changing the height of the conveyor, Ford cut production time to 5 minutes. By 1914, chassis assembly ume had been trimmed from almost 13 hours to 1% hours. The new methods of production required complete standardization, ew machines, and an adaptable lapor force. Costs dropped significantly. the Mogel T became the frst car accessible to he majority of Americans, and Ford dominated the industry for many years, [SOURCE: 1s, H ans Gibe.C. The Pcp of Snic Management [New Yrc Harper a Row 1911 | ‘George Rio CorllGety Images | jl | | | Le neces Would benefit from such an approach. ‘bf the most famous examples of the application of scientific Model T.? The legacy of Taylor's scientific management. management specialist gatned prominence, } roblems, First, critics claimed that Taylor ignored many ” ‘Administrative — Management management approach emphasized the perspective of senior managers within the organization and argued that management was a profession and could be taught. ‘An explict and broad framework for administrative man, agement emergedin 1916, when Henri Fayol,a French mining fengineer and executive, published a book summarizing his management experiences. Fayol identified five functions ‘and 14 principles of management. The fie functions, which ‘re very similar to the four functions discussed in Chapter 1 tre planning, organizing, commanding, coordinating, an controling. Exhibit A.2 lists and defines the 14 principles! Although some critics claim Fayol treated the principles as Universal truths for management, he actually wanted them ‘plied flexibly"? |. Anhost of other executives contibuted to the administ management literature. These writers discussed a broa ‘spectrum of management topics, including the social respon Bolles of management, te philosophy of management, lar] ication of business terms and concepts, and orgenizational EXHIBIT A. | Fayo's 14 Principles of Management | 1. Division of work—divide work into specialized tasks and assign responsiblties to specific individuals, 2. Authority—delegate authority along with responsibilty, 3. Discipline—make expectations clear and punish Violations. 4. Unity of command—each employee should be assigned to only one supervisor. 5. Unity of drection—employees efforts should be focused on achieving organizational objectives. 6. Subordination of individual interest to the general interest—the general interest must predominate. 7. Remuneration—systematically reward efforts that ‘support the organizations direction, 8. Centrolization—determine the relative importance of superior and subordinate roles. 9. Scalar chain—keep communications within the ‘chain of command. 40, Order—order jobs and material so they support the organizations direction. 11. Equityfair discipline and order enhance employee commitment. 12. Stability and tenure of personne!—promote ‘employee loyalty and longevity 43. Initiotive—encourage employees to act on thelr ‘own in support of the organizations direction, 44, Esprit de comps—promote a unity of interests, between employees and management. principles. Chester Barnard’s and Mary Parker Follet’s conta butions have become classic works in this area."* Bamard, former president of New Jersey Bell Telephone. ‘Company, published his landmark book The Functions of the Executive in 1938. He outlined the role of the seniot ‘executive: formulating the purpose of the organization, hiring key individuals, and maintaining organizational communit ‘cations.'? Mary Parker Follet's 1942 book Dynamic Orga Fization extended Barnard's work by emphasizing the ‘continually changing situations that managers face." ff her key contributions—the notion that managers desire flexibility and the differences between motivating group: ‘nd individuals—Iaid the groundwork for the modern contin yency approach discussed later in this appendix | All the writings in the administrative management are smphasize management as a profession along with fel uch a law and medicine. In addition, these authors offered any recommendations based on thelr personal experiences} which often included managing large corporations. though hese perspectives and recommendations were considered Sound, ccs noted that they might not work in ell settings] Different types of personnel, industry conditions, and tech nologies may affect the appropriateness ofthese principles. Human Relations A fourth approach to management jhuman relations, developed during the 1930s, This approac pimed at understanding how psychological and social esses interact with the work situation to influence perfor ance. Human relations was the frst major approach td smphasie informal work relationships and werkersatisfaction| |. This approach owes much to other major schools of hought. For example, many of the ideas of the Gilbrethg {scientific management) ond Barnard and Follet (administra: ive management) influenced the development of humart lations from 1930 to 1955. in fact, human relation smerged from a research project that began as a scent anagement study. Western Electric Company, a manufacturer of comm fications equipment, hired a team of Harvard researcher Jed by Eiton Mayo and Fritz Roethisberger, They were to Investigate the infizence of physical working conditions on ‘workers’ productivity and efficiency in one of the company’s factories outside Chicago. This research project, known #3 the Hawthorne Studies, provided some ofthe most interest, Jng end controversial results inthe history of management.'4 || ‘The Havwthome Studies were a series of experiment ‘conducted from 1924 to 1932, During the fst stage of th project (he iluminetion experiments), various working con! sitions, paiculaly the lighting inthe factor, were otered Jo determine the effects of those changes on productivy| ihe researchers found no systematic relationship between the factory lighting and production levels. In some cases 9reductivty continued to inerease even when the lumina ion was reduced tothe level of moonlight. The researcher oncluded that the workers performed and reacted cifer, nly because the researchers were observing thom, Th. ection is known asthe Hawthorne eect | This conclusion led the researchers to belleve product ity may be affected more by psychological and seca facions 35 than by pRYSICAT oF Objective Taluences. WIth this thought Jn mind, they intiated the other four stages of the project During these stages, the researchers performed various ‘work group experiments and had extensive interviews with ‘employees. Mayo and his team eventually concluded that productivity and employee behavior were influenced by the Informal work group. Human relations proponents argued that managers should stress primarily employee welfare, motivation, and ‘communication. They believed social needs hed prece: ldence over economic needs. Therefore, management must ‘gain the cooperation of the group and promote job satis: faction and group norms consistent with the goals of the prganizaton, | ‘Another noted contributor tothe field of human relation \was Abraham Maslow." In 1943, Mastow suggested that humans have five levels of needs. The most basic needs, ‘are the physical needs for food, water, and shelter: the most advanced need is for self-actualization, or personal fulfil ment. Maslow argued thet people try to satisfy ther lower, jevel needs and then progress upward to the higher-level yeeds, Managers can faciltate this process and achiev ganizational goals by temoving obstacles and encoureg! jing behaviors that satisty peoples needs and organizational ‘goals simultaneously ‘Aithough the human ‘elaions approach general research into leadership, job atitudes, and group dynamics, it drew heavy eftcism."® Critics believed that one result of hruman relations belief that a happy worker was 8 produc: tive worker—was too simplistic. Whereas scientific manage, ment overemphasized the economic and formal aspects of {he workplace, human relations ignored the more rational side ofthe worker and the important characteristics ofthe for. Jrot organization, However, human relations wes o significa rep inthe development of management thought because i prompted managers and researchers to conside the psych Yooical and social factors that influence performance. Bureaucracy Mex Webs, German sociologist, ave [ind soci nso: showed how menogement sai could Povmore effet snd consistent In ig Book The Theon! ‘pf Social and Economic Orgonizations."” The ideal sone Thesmanagement. according to Weber isthe bureaera booroech Ribot believed bureaucratic structures can elminst@ te vanity tht resuts when managers nthe same or sreaien hats arent sts experiences, ond gost Webel Mirocatd tht te Jobs themselves be stncorczed so thet perscntet changes would not asrupt the organization. He Pienased 2 stuetred, formal network of relationships Srana ssaciaizes postion In an organization. Fules a Fiyuraions standocze benavor and authority resides I (eaters ener mani neue As a result he gan corer cant rly om parler aha bt wil reo] teeny ond success by flloning te rales na routing posunbeseo ete ee eapacmy ion ee er bureaucracies ara expecta por, 1 tage organo. fo perorm th fam boca ey es nccasnty for thelial Asa Amica In 1837, William Procter, a ruined English retailer, and James Gamble, son of a Methodist minister, formed a partnership in Cincinnati to make soap and candles. Both were known for their integrity, and soon their business was thriving, By 1883, the business had grown substantially. When Wiliam Cooper Procter, grandson of the founder left Princeton University to work for the firm, he wanted to learn the business from the ground up. He started ‘working on the factary floor. “He did every menial job from shoveling rosin and soap to pouring fatty mixtures into crutchers. He brought his lunch in a paper bag ... and sat on the floor [withthe other workers) and ate with them, learning their feelings about work” By 1884, Cooper Procter believed, from his own experience, that increasing workers psychological commitment to the company would lead to higher productivity His passion to increase employee ‘commitment tothe firm led him to propose @ ‘scandalous plan: share profits with workers to Increase their sense of responsibilty and job satisfaction. The surprise was aucible on the frst dividend day, when workers held checks equivalent to seven weeks pay. Stl the plan was not complete. Workers saw the profit sharing as extra pay rather than as an incentive to improve. In addition, Cooper Procter recognized that a fundamental issue for the workers, some of ‘whom continued to be his good fiends, was the insecurity of old age. Public incorporation in 1890 ‘gave Procter a new idea. After tying several versions, by 1903 he had discovered a way to meet al his {goals for labor a stock purchase plan. For every dollar 2 worker invested in P&G stock, the company would contribute four dollars worth of stock, Finally. Cooper Procter had resolved some key issues {or labor that paid off in worker loyalty, improved productivity. and an increasing corporate reputation for caring and integrity. He went on to become CEO of the firm, and P&G today remains one of the most ‘admired corporations inthe United States. SOURCES: Stags 0. 6ye2 09 Tomorrow. Cicag: Ferguson, 16. 1981: | ‘een Tbe ond vor Corprate Reputation Fortune Febuary 7, | 394.0 50-86 bureaucratic positions foster specialized skis, eliminating Fray subjective Judgments by mangers. eon. th jos and controls are established properly, bureaucracies eh be unbised inte renmet of people bath cs! mers end employees tortnyorgarzavans todo ore bureaucrat. Bureau at'beefelent and productive, However bureouracy 2t ine sopra model or every organization Organ petit may sue under a buresucrase ppeonen Samed easle may not perform ther Best wih Bicessne Buea Grate rules and procedures. thet shortcomings stem trom a faulty execution of bureaucratic princpies rather than trom the epprosch reels, ‘Too much authority may be vested in too few peoples he Procedures may Become the ends rather than the meonel [Bf managers may ignore appropriate rules and regulation} Finally, one advantage of a bureaucracy—its permanence! ‘can also be a problem. Once a bureaucracy Is established) ismanting it's aifieut, CONTEMPORARY APPROACHES The contemporary approaches to management include ‘quantitative menagement, organizational behavicr, systems theory, and the contingency perspective. The contemporary ‘ePproaches have developed at various times since World Wer Il, enc they continue to represent the comerstones of modern management thought. Quantitative Management Aithough Taylor intro: uced the use of science as a management tool eaty the 20% century, most organizations did not adopt the usd sf quantiowe tecnrgues for manegement prosaens ca the 19405 and 19505."* During World Wor I. miltary plan fers began to apply mathematical techniques to defense Bnd logistics problems. After the war. private corporations began assembling teams of quantitative experts to tackle many ofthe complex issues confronting large organizations, ‘This approach, refered to ae quantitative manogement| emphasizes the application of quantitative analysis to mem ‘agement cecisions and problems i Quanttatve management helps @ manager make @

    You might also like