Post on 21-Feb-2018
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The Evolution/History of
Management Theory1
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Evolution of Management
Management as a practice Since men worked in groups (guilds) Ancient massive construction projects
Egyptian pyramids Great Wall of China
In India, evidences can be found in Arthashastra Management as a field of knowledge Industrial revolution (early 1800s) Machine power began to substitute for human power Lead 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 practices
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The Evolution of Management TheoryAndrew Ure was one of
the worlds firstprofessors to teach
management principlesat Andersons College in
Glasgow.
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Evolution of Management4
Pre-classical contributors Robert Owen (1771-1858): advocated for living and working
conditions of workers, age for child labour, reduced hours, andsupplied meals
Charles Babbage (1792-1871): advanced technology, use ofScience and Maths to run the factories better. Work specializationand profit sharing
Henry R. Towne (1844-1924): management as a science and needfor development of management principles
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Contributions:
Efforts were fragmentary
Applied their efforts towards developing specific techniques orsolutions
Laid the groundwork for major management theories whichcame later
First introductorymanagement textbook
(Principles of Management,by George Terry) was
published in 1953.
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1 . S C I E N T I F I C M A N A G E M E N T
The systematic study of the relationships between people and tasks for thepurpose of redesigning the work process for higher efficiency.
Fredrick W. Taylor, The Gilbreths, Henry Laurence Gantt
2 . A D M I N I S T R A T I V E M A N A G E M E N T
The study of how to create an organizational structure that leads to highefficiency and effectiveness.
Henry Fayol, Max Weber, Chester Barnard, Herbert Simon
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Classical Approaches
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Scientific Management
Frederick Winslow Taylor (1856-1915) Father of scientific management
Wrote a bookPrinciples of scientific management in 1911
Observed prevalence of soldiering Hence, advocated systematic study of the relationships between
people and tasks to redesign the work for higher efficiency.
Principles of scientific management:1. Scientifically study each part of the job and develop best method
2. Scientifically select and train workers
3. Cooperate with workers to ensure that they use the propermethod
4. Divide work and responsibility among management and workers
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Taylors Scientific Management has Five basicfeatures:1. Organizational and technical improvements such as better
machine operations, cost accounting, purchasing, and stock
and tool room control2. A planning department for coordination of overall
operations and assignment of jobs
3. The use of Functional foremenwho were responsible for asingle functional activity within the manufacturing process
4. Time study to determine the rate at which a job should bedone
5. An incentive wage system
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Scientific Management in Practice9
Bethlehem Steel Plant With proper modification of
movements, tools andsequencing, productivity/person
improved from 12.5 tons to 47.5tons; incentive schemes broughtwage hike from $ 1.15 to $ 1.85.
Ford Motors
Henry Ford introduced theassembly line in the manufactureof his Model T Ford in 1913.
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Scientific Management (Contd)
Frank (1868-1924) and Lillian Gilbreth (1878-1972)
Refined Taylors methods
Bricklaying efficiency improvements
Time and motion studies (therbligs) to reduce unnecessary movements
in work (identified 17 basic hand motions) Break down each action into components.
Find better ways to perform it.
Reorganize each action to be more efficient.
Also studied fatigue problems, lighting, heating and other worker issues.
Lillian Gilbreth First lady of management
Lillian published Psychology of Management
Wrote a book Cheaper by the Dozen
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Scientific Management in Practice11
http://fullcomment.nationalpost.com/2012/10/26/alexandra-lange-on-lillian-gilbreth-the-woman-who-invented-the-kitchen/
Lillians contribution - The Kitchen Work Triangle
http://fullcomment.nationalpost.com/2012/10/26/alexandra-lange-on-lillian-gilbreth-the-woman-who-invented-the-kitchen/http://fullcomment.nationalpost.com/2012/10/26/alexandra-lange-on-lillian-gilbreth-the-woman-who-invented-the-kitchen/http://fullcomment.nationalpost.com/2012/10/26/alexandra-lange-on-lillian-gilbreth-the-woman-who-invented-the-kitchen/http://fullcomment.nationalpost.com/2012/10/26/alexandra-lange-on-lillian-gilbreth-the-woman-who-invented-the-kitchen/http://fullcomment.nationalpost.com/2012/10/26/alexandra-lange-on-lillian-gilbreth-the-woman-who-invented-the-kitchen/7/24/2019 Ch 02 -- The Evolution of Management
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Scientific Management (Contd)
Henry L. Gantt (1861-1919) Gantt Chart a graphic aid to planning,
scheduling and control
Pay incentives (bonus for completing work inless time) for workers and supervisors
Gantt Chart helps display the results of thetime management activities:
Activity Definition: identifies activities whichthe group members need to complete; estimatedcompletion time, expected costs and resourcesneeded
Activity Sequencing:which order theactivities need to be completed in
Activity Duration Estimating: making aneducated guess as to how long each activity willtake
Schedule Development: create a schedules ofdeliverables, as to what documents are due at whattime
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Assignment13
Gantt Chart
Discuss with your own group and create a Gantt
Chart to map out your group project that is due atthe end of the semester
https://www.youtube.com/watch?v=TjxL_hQn5w0
Share your work me and with the class
https://www.youtube.com/watch?v=TjxL_hQn5w0https://www.youtube.com/watch?v=TjxL_hQn5w0https://www.youtube.com/watch?v=TjxL_hQn5w0https://www.youtube.com/watch?v=TjxL_hQn5w07/24/2019 Ch 02 -- The Evolution of Management
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Relevance???
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Efficiency is exploitation: The studies andtechniques developed by Taylor and Gilbrethsimply enabled employers to get more workout of their employees.
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Criticism to Scientific management
Managers often implemented only the increasedoutput side of Taylors plan.
They did not allow workers to share in increased output.
Specialized jobs became very boring, dull,monotonous.
Workers ended up distrusting Scientific Management.
Workers could purposely under-perform
Management responded with increased use of machines.
Read some of the debates between Upton Sinclair and Taylor
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Administrative Management
Henri Fayol (1841-1925)
Father of modernmanagement
Wrote Administration
Industrielle et Generale
Five managerial functions(Foresight/Planning,Organization, Command,
Coordination, Control) 14 General principles of
management
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Success of anenterprise largelydepends on theadministrativeability of its leaders
as opposed to theirtechnical abilities
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Fayols Fourteen Principles of Management
Division of work Authority and
Responsibility
Discipline
Unity of command
Unity of direction
Subordination of the
individual interests tothe general interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability of tenure ofpersonnel
Initiative Esprit de corps (Spirit
of Teamwork)
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Contd18
1. Division of work: This principle is the same as Adam Smith's'division of labour'. Specialisation increases output by makingemployees more efficient.
2. Authority: Managers must be able to give orders. Authoritygives them this right. Note that responsibility arises whereverauthority is exercised.
3. Discipline: Employees must obey and respect the rules thatgovern the organisation. Good discipline is the result of effectiveleadership, a clear understanding between management and
workers regarding the organisation's rules, and the judicious useof penalties for infractions of the rules.
4. Unity of command: Every employee should receive orders fromonly one superior.
5. Unity of direction: There should be a common goal or purposetowards which everyone should work.
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Contd19
6. Subordination of individual interests to the generalinterest: The interests of any one employee or group ofemployees should not take precedence over the interests of theorganisation as a whole.
7. Remuneration:Workers must be paid a fair wage for their
services.8. Centralisation: Centralisation refers to the degree to whichsubordinates are involved in decision making. Whether decisionmaking is centralised (to management) or decentralised (tosubordinates) is a question of proper proportion. The task is tofind the optimum degree of centralisation for each situation.
9. Scalar chain: The line of authority from top management tothe lowest ranks represents the scalar chain. Communicationsshould follow this chain. However, if following the chain createsdelays, cross-communications can be allowed if agreed to by allparties and superiors are kept informed.
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Contd20
10. Order: People and materials should be in the rightplace at the right time.
11. Equity: Managers should be kind and fair to theirsubordinates.
12. Stability of tenure of personnel: High employeeturnover is inefficient. Management should provideorderly personnel planning and ensure thatreplacements are available to fill vacancies.
13. Initiative: Employees who are allowed to originateand carry out plans will exert high levels of effort.
14. Esprit de corps: Promoting team spirit will buildharmony and unity within the organisation.
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Administrative Management
Max Weber (1864-1920)
Characteristics of an idealbureaucracy
1. Specialization/ Division of labor
2. Well-defined hierarchy
3. Formal selection
4. Career advancement based on merit
5. Formal rules and procedures6. Impersonality
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Bureaucracy isrequired to avoidnepotism and to
improverationality and
objectivity
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Contributions and Limitations of ClassicalManagement
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Contributions: (1) Laid the foundation for management theory
(2) Identified key processes, functions, and skills of
managers that are still important today
(3) Made management a valid subject of scientific inquiry
Limitations: (1) Best used in simple, stable organizations
(2) Provided universal procedures that are not appropriate
in all settings
(3) Most viewed employees as tools rather than asresources
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The study of how managers should behaveto mot ivate employees and encourage themto perform at h igh leve ls and be committedto the achievement of organizat ional goals .
Focuses on the way a manager shouldpersonal ly manage to mot ivate employees .
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Behavioral Science Approach
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Behavioral Science Approach24
Hugo Munsterberg (1863-1916) Father of Industrial Psychology
Scientific study of individuals at work to maximize theirproductivity and adjustment
Published Psychology and Industrial Efficiency in 1913
Most of today's selection techniques, employee training, jobdesign and motivation are based on his work
Psychologists could help industry in 3 major ways
Ensuring person-job fit Identifying best suitable conditions for work
Influencing employees behavior to comply to managementinterests
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Mary Parker Follett (1868-1933) Recognized that organizations could be viewed from the
perspective of individual and group behavior.
The worker knows the best way to improve the job.
If workers have the knowledge of the task, then they shouldcontrol the task.
Team dynamics and self-managing teams
Managers job is to harmonize and coordinate group efforts
Power as a cooperative concept (Constructive conflict)
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Chester I Barnard (1886-1961) Acceptance of Authority: Each individual possesses a
zone of indifference within which the individual is willing toaccept orders and directions without much question. Make sure that the order to show up to work on time is all about
organizational goals and productivity, rather than asking people whatthey do with their personal time.
Make each employees zone of indifference wider
Induce cooperation through incentives (monetary and
recognition), clearly formulated organizational objectives, andeffective communication.
Relevance?
Current interest in building co-operative workgroups, socialresponsibility can be traced back to his ideas.
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Bridged classical and humanresource viewpoints.The Functions of the
Executive in 1938
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Hawthorne Studies (Elton Mayo, Rothelisberger etc.) Group of studies conducted at the Hawthorne Works plant of the Western
Electric Company during 1924-1932 that provided new insights into groupnorms and behaviors
Changed the prevalent view of the time that people were no different thanmachines.
First set of studies (1924-27): illumination studies Worker productivity was measured at various levels of light illumination.
Researchers found that regardless of whether the light levels were raised or lowered, productivity rose.
Actually, it appears that the workers enjoyed the attention they received as part of the study and were moreproductive.
Second set of studies (1927-1933): relay assembly test room study Giving breaks, shortening working hour, giving food
Working in groups, feeling special boosted the productivity
Third set of studies (1931-1932): bank wiring observation room study To find out how payment incentives (individual vs. group wage plans) would affect productivity
Workers were more responsive to the social force of their peer groups
http://www.youtube.com/watch?v=W7RHjwmVGhs
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Role of social aspects on productivity : It was the socialsituations of the workers, not just the working conditions,that influenced behavior at work.
The experiments, procedures were highly criticized
Relevance??
Current organizational practices that owe their roots to
the Hawthorne studies include attitude surveys,employee counseling, management training,participative decision making, team basedcompensation systems
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Human Relations Movement Idea surfaced in early 20th Century
Focused on the notion that work was done by people
Based on a belief in the importance of employee satisfactiona
satisfied worker was believed to be a productive worker. Need to focus on human element
Dale Carnege (1888-1955): How to win friends and influencepeople (1936)
Abraham Maslow (1908-1970): Hierarchy of needs theory
Douglas McGregor (1906-1964): Theory X and Theory Y
Common thread was optimism about peoples capabilities
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Douglas McGregor proposed the two different sets ofworker assumptions.
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Theory X
Assumes the average worker islazy, dislikes work and will doas little as possible.
Managers must closelysupervise and control
through reward andpunishment.
Theory Y
Assumes workers are not lazy,want to do a good job and thejob itself will determine if theworker likes the work.
Managers should allow the
worker great latitude, andcreate an organization tostimulate the worker.
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An approach to management th at uses
r igorous quanti tat ive techniques tomaximize the use of organizat ionalresources .
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Management Science Approach
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Management Science/ The Quantitative Approach
Evolved out of the development of mathematical andstatistical solutions to military problems during World
War II.
Uses rigorous quantitative techniques to maximize
resources. Quantitative management: utilizes linear programming, modeling,
simulation systems.
Operations management: techniques to analyze all aspects of the
production system. Total Quality Management (TQM): focuses on improved quality.
Management Information Systems (MIS): provides informationabout the organization.
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The set of forces and conditions that operate
beyond an organizations boundaries but affect amanagers ability to acquire and utilize resources.
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Organizational Environment
Theory
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Systems Approach: views organizations as systems. System A set of interrelated and interdependent parts arranged in a manner that
produces a unified whole Open and closed systems
Open system A system that takes resources for its external environment and converts them into goods
and services that are then sent back to that environment for purchase by customers. Inputs: the acquisition of external resources. Conversion: the processing of inputs into goods and services. Output: the release of finished goods into the environment.
Closed system A system that is self-contained and thus not affected by changes occurring in its external
environment.
Often undergoes entropy and loses its ability to control itself, and fails. Synergy
Performance that results when individuals and departments coordinate their actions Performance gains of the whole surpass the sum of the performance of the individual
components.
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The Organization as an Open System
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Contingency Approach The organization and how its managers should manage it are contingent on
the companys environment and on technology Assumes there is no one best way to manage.
The environment impacts the organization and managers must be flexible to react toenvironmental changes.
The way the organization is designed, control systems selected, depend on the environment.
Four popular contingency variables Organization size Routineness of task technology Environmental uncertainty Individual differences
Tom Burns and G. M. Stalker Mechanistic Organizations: Authority is centralized at the top (Theory X) Employees closely monitored and managed. Very efficient in a stable environment.
Organic Organizations: Authority is decentralized throughout employees. (Theory Y) Much looser control than mechanistic. Managers can react quickly to changing environment.
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Management theory jungle (Harold Koontz) The diversity of approaches to the study of management
functions, quantitative emphasis, human relationsapproacheseach offer something to management theory, butmany are only managerial tools.
Planning, leading, and controlling activities arecircular and continuous functions of management.
So, broadly three integrativeframeworks/approaches to understand Management Process
Systems
Contingency