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The case we have just discussed , illustrates many different comprehensive management skill challenges that management at Burger

King to be successful, management must collectively apply insights from the classical, behavioral, management science, contingency, systems and learning organisations.

THE PRE-MODERN ERA

Ancient massive construction projects


Egyptian

pyramids Great Wall of China

Michelangelo the manager

ADAM SMITHS CONTRIBUTION TO THE FIELD OF MANAGEMENT

Wrote the Wealth of Nations (1776)


Advocated

the economic advantages that organizations and society would reap from the division of labor:
Increased

productivity by increasing each workers skill and dexterity. Time saved that is commonly lost in changing tasks. The creation of labor-saving inventions and machinery.

THE INDUSTRIAL REVOLUTIONS INFLUENCE ON MANAGEMENT PRACTICES

Industrial revolution
Machine
Lead

power began to substitute for human power


to mass production of economical goods

Improved

and less costly transportation systems became available


Created

larger markets for goods.

Larger

organizations developed to serve larger markets


Created

the need for formalized management

CLASSICAL CONTRIBUTIONS

Classical approach
The

term used to describe the hypotheses of the scientific management theorists and the general administrative theorists.
Scientific

management theorists

Fredrick W. Taylor, Frank and Lillian Gilbreth, and Henry Gantt

General

administrative theorists

Henri Fayol and Max Weber

SCIENTIFIC MANAGEMENT

Frederick W. Taylor
The

Principles of Scientific Management (1911)

Advocated

the use of the scientific method to define the one best way for a job to be done

Believed

that increased efficiency could be achieved by selecting the right people for the job and training them to do it precisely in the one best way. To motivate workers, he favored incentive wage plans. Separated managerial work from operative work.

TAYLORS FOUR PRINCIPLES OF MANAGEMENT

Develop a science for each element of an individuals work, which replaces the old rule-of-thumb method. Scientifically select and then train, teach, and develop the worker. (Previously, workers chose their own work and trained themselves as best they could.) Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers. (Previously, almost all the work and the greater part of the responsibility were thrown upon the workers).
EXHIBIT HM1

SCIENTIFIC MANAGEMENT CONTRIBUTORS

Frank and Lillian Gilbreth


Bricklaying

efficiency improvements Time and motion studies

Henry Gantt
Incentive

compensation systems Gantt chart for scheduling work operations

ADMINISTRATIVE MANAGEMENT

General administrative theorists


Writers

who developed general theories of what managers do and what constitutes good management practice Henri Fayol (France)
Fourteen

Principles of Management: Fundamental or universal principles of management practice

Max

Weber (Germany)

Bureaucracy:

Ideal type of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships

FAYOLS FOURTEEN PRINCIPLES OF MANAGEMENT

Division of work

Centralization

Authority
Discipline Unity of command Unity of direction Subordination of the individual Remuneration

Scalar chain
Order Equity Stability of tenure of personnel Initiative Esprit de corps
EXHIBIT HM2

WEBERS IDEAL BUREAUCRACY


Division of Labor Authority Hierarchy Formal Selection Formal Rules and Regulations Career Orientation

EXHIBIT HM3

HUMAN RESOURCES APPROACH

Robert Owen
Claimed

that a concern for employees was profitable for management and would relieve human misery.
the field of industrial psychologythe scientific study of individuals at work to maximize their productivity and adjustment.

Hugo Munsterberg
Created

HUMAN RESOURCES APPROACH

Mary Parker Follett


Recognized

that organizations could be viewed from the perspective of individual and group behavior.

Chester Barnard
Saw

organizations as social systems that require human cooperation. Expressed his views in his book The Functions of the Executive (1938).

HUMAN RELATIONS MOVEMENT


Based on a belief in the importance of employee satisfactiona satisfied worker was believed to be a productive worker. Advocates were concerned with making management practices more humane.

Dale

Carnegie Abraham Maslow Douglas McGregor

THE QUANTITATIVE APPROACH

Operations research (management science)


Evolved

out of the development of mathematical and statistical solutions to military problems during World War II. Involves the use of statistics, optimization models, information models, and computer simulations to improve management decision making for planning and control.

THE PROCESS APPROACH

Management theory jungle (Harold Koontz)


The

diversity of approaches to the study of managementfunctions, quantitative emphasis, human relations approacheseach offer something to management theory, but many are only managerial tools.

Planning, leading, and controlling activities are circular and continuous functions of management.

THE SYSTEMS APPROACH

Defines a system as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole
Closed

system : a system that is not influenced by and does not interact with its environment Open system: a system that dynamically interacts with its environment Stakeholders: any group that is affected by organizational decisions and policies

THE ORGANIZATION AND ITS ENVIRONMENT

EXHIBIT HM4

THE CONTINGENCY APPROACH


The situational approach to management that replaces more simplistic systems and integrates much of management theory Four popular contingency variables

Organization

size Routineness of task technology Environmental uncertainty Individual differences

Henri Fayol
(1841 - 1925)

Henri Fayols Background


* Graduated from the National School of Mines in Saint Etrenne in 1860 * After graduation he went to work and spent his entire career at Commentry-Fourchamboult-Decazeville. He was named managing director in 1888 and maintained that position until he retired in 1918. * He is credited with saving the company from bankruptcy * During his career he lectured at Ecole Superievre de la Guerre * In his retirement he established the Center of Administrative Studies

Fayols Big Contributions to Management


1) Universality of management: The same skills are needed to manage a coal mine that are needed to manage a hospital, post office, university, etc..

2) Management is a field in and of itself: There were no schools of management prior to Henri Fayol!!!

Fayols Principles of Management


Division of Labor Fayol Encouraged job specialization while realizing that too narrow a focus lead to boredom and falling production

Authority & Responsibility This is more than giving and having orders followed. Fayol thought that authority should derive from expertise, leadership skill, knowledge, etc., and lead to a sincere commitment from subordinates

Fayols Principles of Management


Unity of Command only one person. Orders should be received from

Line of Authority There should be a chain of command from the very top to the very bottom of the organization. Fayol realized that there should be as few layers of management as possible

Fayols Principles of Management


Centralization Fayol preferred a less centralized management hierarchy. He didnt want decisions made too far away from the problem
Unity of Direction Today we would call this singleness of purpose

Initiative Employees should be able to act on their own which spurs creativity and innovation

Fayols Principles of Management


Equity employees should be treated fairly.

For personnel to be encouraged to carry out their duties with all the devotion and loyalty of which they are capable, they must be treated with respect for their own sense of integrity, and equality results from the combination of respect and justice

Order The arrangement of positions in the organization should maximize efficiency and provide employees with career opportunities

Fayols Principles of Management


Discipline Managers need to enforce rules to achieve company goals.

Remuneration of Personnel Fayol was an early supporter of bonuses and profit sharing plans Stability and tenure of employees Long-term employees lead to better producing companies.

Fayols Principles of Management


Subordination of Individual Interests to the common interest Employees need to understand how their performance affects the entire organization

Esprit de Corp Managers should develop a shared feeling of devotion to a common cause

Fayols Functions of Management

PLANNING

CONTROLLING

ORGANIZING

LEADING

FAYOLS QUALITIES OF EFFECTIVE PLANS

UNITY

At any one time an organization should have only one guiding organizational goal

CONTINUITY

Planning is an ongoing process and previous plans should be modified to fit together in the corporate framework

ACCURACY
Managers should collect and utilize all available information to make a plan as accurate as possible

FLEXIBILITY

A manager should not be stuck with a static plan, but be able to change and alter as situations do.

SCIENTIFIC MANAGEMENT

Frederick W. Taylor

The Principles of Scientific Management (1911)

Advocated the use of the scientific method to define the one best way for a job to be done

Believed that increased efficiency could be achieved by selecting the right people for the job and training them to do it precisely in the one best way. To motivate workers, he favored incentive wage plans. Separated managerial work from operative work.

TAYLORS FOUR PRINCIPLES OF MANAGEMENT


1. Develop a science for each element of an individuals work, which replaces the old rule-ofthumb method.

2. Scientifically select and then train, teach, and develop the worker. (Previously, workers chose their own work and trained themselves as best they could.)

3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers. (Previously, almost all the work and the greater part of the responsibility were thrown upon the workers.)

Common criticisms of Henri Fayol


Management is not always universal: Fayol was criticized because he only had experience in a coal mine. Many have said just because you can manage a coal mine does not necessarily mean you can manage a hospital.

His writing is lessons learned in his career: Everything that Fayol wrote about was something from his career as the managing director of a mining company. The criticism is that his background was not all that diverse.

Common Criticisms of Henri Fayol


Taylors argument: Taylor thought that specialization was the best form of management. He thought that each worker did eight different things and that for each thing there should be a supervisor. Fayol thought that each person should only have one supervisor. Further, Fayol liked having teams do work together and making their own decisions rather than having a specialist do every little thing.

Common Criticisms of Fayol


Modern Criticism: Fayol refused to purchase stock in his own company because he felt it compromised his position as the firms managing director. Today, managers are expected to have their pay tied to stock because it is seen as their job to increase shareholder wealth.

Fayol, also, wanted to board of directors and shareholders to have limited power because he felt they were incompetent. This is criticized by those today who demand shareholder rights be increased.