EVOLUTION OF MANAGEMENT

MANAGEMENT YESTERDAY AND TODAY

• Studying history is a way to achieve strategic thinking, see the big picture and improve conceptual skills.

• Social, political and economic forces have influenced organizations and the practice of management.

1) Social forces– Refer to those aspects of a culture that guide and influence

relationships among people.2) Political forces– Refer to the influence of political and legal institutions on

people and organizations.3) Economic forces– Pertain to the availability, production and distribution of

resources in a society.

Management Perspectives over Time

1) Classical Perspective– Scientific Management– Bureaucratic Organization– Administrative Principles

2) Humanistic Perspective– Human Relations Movement– Human Resources Perspective– Behavioral Sciences Approach

3) Management Science Perspective4) Systems Theory5) Contingency View6) Total Quality Management7) The Learning Organization8) The Technology-Driven Workplace

Classical PerspectiveClassical Perspective

• The earliest study of managementThe earliest study of management

• Emerged during the nineteenth and early Emerged during the nineteenth and early twentieth centuriestwentieth centuries

• Contains 3 subfields, each with a slightly Contains 3 subfields, each with a slightly different emphasis:different emphasis:1) Scientific management1) Scientific management2) Bureaucratic organizations2) Bureaucratic organizations3) Administrative principles3) Administrative principles

1) Scientific Management1) Scientific Management

Scientific Management: Scientific Management: emphasized the scientific study of work methods to improve the productivity of individual workers

Two of its chief proponents were Frederick W. Taylor, & Frank and Lillian Gilbreth

Frederick W. Taylor Frederick W. Taylor The “father” of scientific managementThe “father” of scientific management

• The theory of scientific management– Using scientific methods to define the “one

best way” for a job to be done:• Putting the right person on the job with the

correct tools and equipment.

• Having a standardized method of doing the job.

• Providing an economic incentive to the worker.Copyright © 2005 Prentice Hall, Inc. All rights reserved.

Management Today

• How Do Today’s Managers Use Scientific Management?– Use time and motion studies to increase

productivity– Hire the best qualified employees– Design incentive systems based on output

Copyright © 2005 Prentice Hall, Inc. All rights reserved.

Characteristic of Scientific Management

• General Approach– Developed standard method for performing each

job– Selected workers with appropriate abilities for

each job– Trained workers in standards methods– Supported workers by planning their work and

eliminating interruptions– Provide wage incentives to workers for increased

output.

• Contributions– Demonstrated the importance of compensation

for performance– Initiated the careful study of tasks and jobs– Demonstrated the importance of personnel

selection and training

• Criticism– Did not appreciate the social context of work and

higher needs of workers– Did not acknowledge variance among individuals– Tended to regard workers as uninformed and

ignored their ideas and suggestions

1. Scientific management theory arose in part from the need to increase productivity.

2. In the united states especially, skilled labor was in short supply at the beginning of the twentieth century.

3. The only way to expand the productivity was to raise the efficiency of workers.

4. Therefore ,Fredick W.Taylor,Henry Gantt,and Frank and Lillian Gilberth devised the body of principles known as Scientific management theory

2) Bureaucracy Organizations2) Bureaucracy Organizations

1. Positions organized in a hierarchy of authority2. Managers subject to rules and procedures that will ensure

reliable predictable behavior3. Management separate from the ownership of organization4. Administrative acts and decisions recorded in writing5. Personnel selected and promoted based on technical

qualifications6. Division of labor, with clear definitions of authority and

responsibility.

To Weber, a bureaucracy was a rational, efficient ideal organization based on principles of logic—he felt good organizations should have six bureaucratic features:

3) Administrative Management3) Administrative Management

Administrative Administrative Management: Management: concerned with managing the total organization

Among the pioneering theorists were Henry Fayol & Max Weber

Henry Fayol and the Functions Henry Fayol and the Functions of Managementof Management

Henry Fayol Henry Fayol was the first to systematize management behavior – he was the first to identify the major functions of management: planning, organizing, leading, controlling, as well as coordinating and commanding.

•Management philosophy:

• Unity of command – Each subordinate receives orders from one – and only one – superior

•Division of work – Managerial and technical work are amenable to specialization to produce more and better work with the same amount of effort.

•Unity of Direction – Similar activities in an organization should be grouped together under one manager.

•Scalar chain – A chain of authority extends from the top to the bottom of the organization and should include every employee.

•Emphasized the importance of understanding human behaviors, needs and attitudes in the workplace as well as social interactions and group processes.

Humanistic PerspectiveHumanistic Perspective

1) The Human Relations Movement

Proposed that better human relations could increase worker productivity.

One of the earliest to study motivation, Maslow

proposed his “hierarchy of human needs” in

1943.

Maslow’s Hierarchy of Needs

2) Human Resources Perspective

• Maintained an interest in worker participation and considerate leadership but shifted the emphasis to consider the daily tasks that people perform.

• Combines prescriptions for design of job tasks with theories of motivation.

• This will allow workers to use their full potential.

• Pessimistic negative view Pessimistic negative view towards workerstowards workers

• Workers are irresponsibleWorkers are irresponsible• Workers are resistant to Workers are resistant to

changechange• Workers lack ambition, Workers lack ambition,

hate to workhate to work• Workers would rather be Workers would rather be

led than leadled than lead

• Optimistic positive view of Optimistic positive view of workers: workers: human relations human relations proponents’ viewproponents’ view

• Workers are capable of Workers are capable of accepting responsibilityaccepting responsibility

• Workers are capable of self-Workers are capable of self-directiondirection

• Workers are capable of self-Workers are capable of self-controlcontrol

• Workers are capable of being Workers are capable of being imaginative and creativeimaginative and creative

Theory XTheory X YTheory Y

3) Behavioral Science Approach3) Behavioral Science Approach

Behavioral Science Behavioral Science relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers.

Behavioral Science draws from sociology, psychology, anthropology, economics and other disciplines to understand employee behavior and interaction in an organizational setting.

Management Science Management Science PerspectivePerspective

• Management Science Management Science focuses on using mathematics to aid in problem solving and decision making.

• Suitable forSuitable for large scalelarge scale business firms.business firms.

• Example: Example: forecasting, forecasting, inventory modeling, linear and inventory modeling, linear and nonlinear programming, nonlinear programming, scheduling and break-even scheduling and break-even analysis.analysis.

Recent Historical Trends

• There are 2 recent trends that grew out of the humanistic perspective:1) Systems Theory2)Contingency View

The Systems TheoryThe Systems Theory

The Systems Theory The Systems Theory regards the organization as a system of interrelated parts

By adopting this perspective you can look at your organization in two ways

1. A collection of subsystems—parts making up the whole system

2. A part of the larger environment

environmentenvironment

OPEN AND CLOSED SYSTEMSOPEN AND CLOSED SYSTEMS

Open System Open System continually interacts with its environment

Closed System Closed System has little interaction with its

environment; it receives very little feedback from

the outside

The Contingency ViewThe Contingency View– The Contingency View The Contingency View

emphasizes that a manager’s approach should vary according to—that is, be contingent on—the individual and the environmental situation

– Also sometimes called the situational approach.

– There is no one universally applicable set of management principles (rules) by which to manage organizations.

– Organizations are individually different, face different situations (contingency variables), and require different ways of managing.

Question

• Based on your experience at work or school, describe some ways in which the principles of scientific management and bureaucracy are still used in organizations. Do you believe these characteristics will ever cease to be a part of organizational life? Discuss.