The Evolution of Management

Theory

Figure 2.1
BnR-Peng.Manajemen-Chap-05 1
 WHAT IS EVOLUTION?
Evolution is usually defined as slow
stages of growth and development,
starting from simple forms to more
complex forms.

2
 Scientific Management Theory
Scientific Management
*The systematic study of the relationships
between people and tasks for the
purpose of redesigning the work process
for higher efficiency.
*Makes use of the step by step, scientific
methods for finding the single best way
for doing a job.

BnR-Peng.Manajemen-Chap-05 3
Frederick W. Taylor
*Known as the father of Scientific
Management.
*Wanted to replace “rule of thumb”
*Sought to reduce the time a worker spent
on each task by optimizing the way the
task was done.

BnR-Peng.Manajemen-Chap-05 4
 Four Principles of Scientific
Management
1) Study the ways jobs are performed now and
determine new ways to do them.
• Gather detailed time and motion information.
• Try different methods to see which is best.

BnR-Peng.Manajemen-Chap-05 5
 Four Principles of Scientific
Management
2) Codify the new methods into rules.
• Teach to all workers
the new method.

BnR-Peng.Manajemen-Chap-05 6
 Four Principles of Scientific
Management
3) Select workers whose skills match the
rules.
4) Establish fair levels of performance
and pay a premium for higher
performance.
• Workers should benefit from higher output

BnR-Peng.Manajemen-Chap-05 7
 Administrative Management
Theory
Administrative Management
–The study of how to create an organizational
structure that leads
to high efficiency
and effectiveness.
–It concentrates on the
manager’s functions and
what makes up good
management practice or
Implementation.BnR-Peng.Manajemen-Chap-05 8
 Administrative Management
Theory
Max Weber
–Developed the concept of bureaucracy as a
formal system of organization and
administration designed to ensure efficiency
and effectiveness.

BnR-Peng.Manajemen-Chap-05 9
Max Weber
• Born in Germany in 1864
• He was interested in industrial capitalism
• He visited the U.S IN 1904
• Rational Authority
• Bureaucracy

BnR-Peng.Manajemen-Chap-05 10
 Characteristics of the
Bureaucracy
• Hierarchical Management Structure
• Division of Labor
• Formal Selection Process
• Career Orientation
• Formal Rules and Regulations
• Impersonality

BnR-Peng.Manajemen-Chap-05 11
Henri Fayol
*Born in France in 1841
*He was a mining engineer who became
the head of a large mining company.
*Fayol concerned with how workers were
managed and how they contributed to the
organization.

BnR-Peng.Manajemen-Chap-05 12
 Fayol’s Principles of
Management
• Division of Labor: allows for job specialization.
– jobs can have too much specialization leading to
poor quality and worker dissatisfaction.
• Authority and Responsibility
– both formal and informal authority resulting from
special expertise.
• Unity of Command
– Employees should have only one boss.

BnR-Peng.Manajemen-Chap-05 13
 Fayol’s Principles of
Management
• Line of Authority
–A clear chain of command from top to bottom
of the firm.
• Centralization
–The degree to which authority rests at the top
of the organization.
• Unity of Direction
–A single plan of action to guide the
organization.

BnR-Peng.Manajemen-Chap-05 14
 Fayol’s Principles of
Management
• Equity - The provision of justice and the fair and
impartial treatment of all employees.
• Order - The arrangement of employees where
they will be of the most value to the organization
and to provide career opportunities.
• Initiative - The fostering of creativity and
innovation by encouraging employees to act on
their own.

BnR-Peng.Manajemen-Chap-05 15
 Fayol’s Principles of
Management
• Discipline
–Obedient, applied, respectful employees are
necessary for the organization to function.
• Remuneration of Personnel
–An equitable uniform payment system that
motivates contributes to organizational
success.

BnR-Peng.Manajemen-Chap-05 16
 Fayol’s Principles of
Management
• Stability of Tenure of Personnel
–Long-term employment is important for the
development of skills that improve the
organization’s performance.
• Subordination of Individual Interest to the
Common Interest
–The interest of the organization takes
precedence over that of the individual employee.

BnR-Peng.Manajemen-Chap-05 17
 Fayol’s Principles of
Management
Esprit de corps
–Comradeship, shared
enthusiasm foster
devotion to the
common cause
(organization).

BnR-Peng.Manajemen-Chap-05 18
 Total Quality Management
• focuses on analyzing input, conversion,
and output activities to increase product
quality.
• a management philosophy that focuses on
the satisfaction of customers, their needs,
and expectation.
• Joseph M. Juran and W. Edwards Deming

BnR-Peng.Manajemen-Chap-05 19
Deming’s 14 points for top
management
• Create constancy of purpose for
improvement of products and services
• Adopt the new TQM philosophy
• Cease dependence on mass inspection by
doing things right and doing it right the first
time
• End the practice of awarding business on
the basis of price tag alone.
BnR-Peng.Manajemen-Chap-05 20
• Constantly improve the system of
production and services.
• Institute training
• Adopt and institute leadership
• Drive out fear
• Break down barriers between staff areas
• Eliminate slogan, focus on correction of
defects in the system
• Eliminate numerical quota for the work
force
BnR-Peng.Manajemen-Chap-05 21
• Remove barriers that rob people of “pride
of workmanship”
• Encourage education and self-
improvement for everyone
• Take action to accomplish the
transformation.
Fitness of Quality According to Juran
*Quality of Design
*Quality of Conformance
*Availability
*Full Service BnR-Peng.Manajemen-Chap-05 22
Juran’s Quality Planning Roadmap
• Identify your customers
• Determine their needs
• Translate them into one’s language
• Develop a product that can respond to
needs
• Develop processes which are able to
produce those product features
• Prove that the process can produce the
product
• Transfer the resulting plans to the
23
operating process
Behavioral Management Theory
Behavioral Management
–The study of how managers should behave to
motivate employees and encourage them to
perform at high levels and be committed to the
achievement of organizational goals.
–Focuses on the way a manager should
personally manage to motivate employees.

BnR-Peng.Manajemen-Chap-05 24
 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

BnR-Peng.Manajemen-Chap-05 25