Ch 2 the Management Movement
-
Upload
sanket-vijaykumar-jagare -
Category
Documents
-
view
215 -
download
0
Transcript of Ch 2 the Management Movement
-
8/22/2019 Ch 2 the Management Movement
1/34
Theories of Management
The Evolution of Management
-
8/22/2019 Ch 2 the Management Movement
2/34
What Youll Learn
How the Industrial Revolution created a
new need for management.
How the captains of industry of the lastcentury created huge empires.
The principles of Scientific Management.
The results of the Hawthorne studies onworker productivity.
Maslows Hierarchy of Needs
-
8/22/2019 Ch 2 the Management Movement
3/34
What Youll Learn contd
The difference between Theory X, Y, and Z What TQM stands for and Demings 14 pts
Centralization and Decentralization
Japanese management concepts andAmerican management practices
Becoming familiar with modern management
principles will help you understand howbusinesses function in todays environment.
-
8/22/2019 Ch 2 the Management Movement
4/34
The Industrial Revolution
Refers to the period during which a countrydevelops an industrial economy. In Europe theIndustrial Revolution began in the eighteenth
century; in the United States, it began around1860, just before the Civil War.
Before the Industrial Revolution, the US economywas based on agriculture. Most people worked on
small farms, using only simple technology, suchas horse-drawn plows. Professional managerswere not needed because most people worked forthemselves.
-
8/22/2019 Ch 2 the Management Movement
5/34
Captains of Industry
Toward the end of the nineteenth century,powerful business people who created enormousbusiness empires dominated and shaped the USeconomy. These captains of industry includedJohn D. Rockefeller (oil), JP Morgan (banking),
Andrew Carnegie (steel) and Cornelius Vanderbilt(steamships and railroads).
During this period entrepreneurs foundedcompanies that later became industrial giants.
One of these companies was Bethlehem Steel. In1863, the company began producing the first ironrailroad rails; by 1899, it was selling almost $1trillion worth of iron and steel products in a year.
-
8/22/2019 Ch 2 the Management Movement
6/34
Management History
By the late 1800s, the US economy depended
largely on industries such as oil, steel, railroads,
and manufactured goods.
Many people left their farms to take jobs infactories, where professional managers supervised
their work.
The new industrial enterprises that emerged in thenineteenth century demanded management skills
that had not been necessary earlier.
-
8/22/2019 Ch 2 the Management Movement
7/34
Scientific Management
Frederick Winslow Taylor(1856-1915) was the
father of Scientific Management. When he was
working as an apprentice at the Midvale steel
company, he noticed that most workers did notwork as hard as they could. To increase
efficiency, Taylor tried to figure out the one
best way to perform a particular task. To do so,
he used a stop watch to determine which methodwas the most efficient. These studies were
known as Time and Motion Studies.
-
8/22/2019 Ch 2 the Management Movement
8/34
Taylors scientific management was
based on four main ideas:
1. Jobs should be designed according to
scientific rules rather than rule-of-thumbmethods. Employers should gather,
classify, and tabulate data in order to
determine the one best way ofperforming a task or series of tasks.
-
8/22/2019 Ch 2 the Management Movement
9/34
2. Employees should be selected and trained
according to scientific methods. Employersshould also train employees in order to
improve their performance.
3. The principles of scientific management
should be explained to workers.
4. Management and workers should be
interdependent so that they cooperate.
-
8/22/2019 Ch 2 the Management Movement
10/34
Abraham H. Maslow
1908-1970Maslow was a psychologist who developed a theory
of motivation. His ideas had a significant impact
on management. Maslow believed that
individuals fulfill lower-level needs beforeseeking to fulfill higher-level needs. That is,
people satisfy their need for food before they seek
self-fulfillment. Because one set of needs must be
met before another is sought, Maslow referred tothis as a hierarchy of needs.
-
8/22/2019 Ch 2 the Management Movement
11/34
Maslows Theory
-
8/22/2019 Ch 2 the Management Movement
12/34
Applying Maslows Theory to
ManagementAt the lowest level, workers are motivated by basic needs,
such as the needs for wages or salary. Basic needs also
include the physical conditions in which a person works,
such as heating, lighting, and noise.
Once these basic needs are met, employers can address the
next level of needssafety or security needs. Some of
these security needs can be met by providing employees
with insurance, retirement benefits, and job security.
Employees need to know that in the workplace, they aresafe from physical, psychological, or financial harm.
-
8/22/2019 Ch 2 the Management Movement
13/34
Managers meet workers social needs by providingwork environments in which colleagues interact
by providing opportunities for co-workers tosocialize with one another by providing lunchrooms or allowing employees to attend companyretreats.
Status needs can be met by providing employeeswith signs of recognition that are visible to others,such as job titles, awards, designated parkingspaces, and promotions.
Managers can meet employees need forself-fulfillment by providing them with opportunitiesto be creative at work or allow them to becomeinvolved in decision making.
-
8/22/2019 Ch 2 the Management Movement
14/34
Theory X
MIT Professor Douglas McGregor
Theory Xassumes that people are basically
lazy and will avoid working if they can. Tomake sure that employees work, Theory X
managers impose strict rules and make sure
that all important decisions are made only
by them.
-
8/22/2019 Ch 2 the Management Movement
15/34
Theory Y
Theory Y assumes that people find
satisfaction in their work. Theory Y
managers believe that people are creative
and will come up with good ideas if
encouraged to do so. They tend to give
their employees much more freedom and let
them make mistakes.
-
8/22/2019 Ch 2 the Management Movement
16/34
Theory Z
William Ouchi, a management researcherdeveloped this new theory of managementin the 1980s
Theory Z is a business management theorythat integrates Japanese and Americanbusiness practices. The Japanese business
emphasis is on collective decision making,whereas the American emphasis is onindividual responsibility.
-
8/22/2019 Ch 2 the Management Movement
17/34
Japanese Type Organization
1. Lifetime employment
2. Collective decision making
3. Collective responsibility
4. Slow evaluation and promotion
5. Implicit (understood, implied) controlmechanisms
6. Non-specialized career path
7. Holistic concern for employee as a person
-
8/22/2019 Ch 2 the Management Movement
18/34
American Type Organization
1. Short-term employment
2. Individual decisionmaking
3. Individual responsibility
4. Rapid evaluation and promotion
5. Explicit (clear, precise, unambiguous) control
mechanisms
6. Specialized career path
7. Segmented concern for employee as an
employee.
-
8/22/2019 Ch 2 the Management Movement
19/34
Theory Z Type Organization
1. Long-term employment
2. Consentual, participative decision-making
3. Individual responsibility
4. Slow evaluation and promotion
5. Implicit, informal control with explicit,formalized measures
6. Moderately specialized career path
7. Holistic concern, including family
-
8/22/2019 Ch 2 the Management Movement
20/34
The Hawthorne Effect
The result of an experiment conducted at the
Hawthorne plant of Western Electric in Cicero,
Illinois in 1924. They lowered the lighting in the
factory, expecting productivity to fall; but instead,to their astonishment, productivity increased.
The researchers concluded that productivity rose
because workers worked harder when they
received attention. This phenomenon, in which
change of any kind increases productivity, has
been known as the Hawthorne Effect.
-
8/22/2019 Ch 2 the Management Movement
21/34
TQMTotal Quality
Management Result of study conducted in the 1950s by W.
Edwards Deming who began studying howcompanies ensure that the products they produceare not defective. He came up with amathematically based approach to quality controlthat became known as Total Quality Management,which is a system of management based oninvolving all employees in a constant process of
improving quality and productivity by improvinghow they work. This approach focuses on totallysatisfying both customers and employees.
-
8/22/2019 Ch 2 the Management Movement
22/34
TQMDemings Fourteen Points
1. Create consistent purpose for improvingproducts and services in order to remaincompetitive.
2. Adopt a new philosophy. We are now living in
a new economic age.3. Stop depending on mass inspection. Require
instead that quality is built in.
4. Consider quality as well as price in awarding
business.5. Constantly improve the system of production
and service.
6. Institute a vigorous program of job training.
-
8/22/2019 Ch 2 the Management Movement
23/34
Demings 14 points contd
7. Adopt and implement leadership. Focus onquality, not productivity.
8. Drive out fear so that everyone may work
effectively.9. Break down barriers between departments.
10. Eliminate numerical goals, posters, slogans, forthe work force that ask for new levels of
productivity without providing new methods.11. Eliminate work standards that prescribe
numerical quotas.
-
8/22/2019 Ch 2 the Management Movement
24/34
Demings 14 points contd
12. Remove barriers that stand between the hourly
worker and his or her right to pride of
workmanship.
13. Encourage education and self-improvement foreveryone.
14. Create a structure in top management that will
work every day to achieve the above 13 points.
Most companies that have adopted TQM found that
the performance of their companies improved.
-
8/22/2019 Ch 2 the Management Movement
25/34
International Management
Thailand
The social culture of Thailand has given rise
to highly centralized corporations with strict
lines of authority. Self-managed teams
would not be a viable management style
because workers are used to taking direction
from leaders whose authority is absoluteand based on status.
-
8/22/2019 Ch 2 the Management Movement
26/34
Japanese Management Practices
Japanese managers encourage more employee
participation in decision making.
Japanese managers show deeper concern for
the personal well-being of their employees.
Rather than present their workers with
demands, Japanese managers tend to
facilitate decision making by teams of
workers.
-
8/22/2019 Ch 2 the Management Movement
27/34
Japanese Business Practices contd
Japanese business practices have been successfullyexported to the United States at Hondas plant inMarysville, Ohio. Unlike most American plants,where there is a clear distinction between workersand managers, all Honda employees areempowered to make decisions. As a result, Hondaemployees are energetic and committed to
producing high-quality products. They turn out
one Honda Accord per minute. This high level ofproductivity is attributed to several innovative(new, original, groundbreaking) management
practices, where workers are organized by teams
rather than by function.
HERZBERGS
-
8/22/2019 Ch 2 the Management Movement
28/34
HERZBERGS
Motivation-Hygiene Theory
Psychologist Frederick Herzberg believed that:
Intrinsicnatural, realfactors are related tojob satisfaction &
Extrinsic factors are related to job
dissatisfaction.
-
8/22/2019 Ch 2 the Management Movement
29/34
Herzbergs Theory contd
On the other hand, when employees were
dissatisfied, they tended to cite extrinsic factors
such as company policy and administration,
supervision, interpersonalrelationships, andworking conditions.
Herzberg suggested emphasizing motivators
those factors that increase job satisfaction, such asrecognition and growth.
-
8/22/2019 Ch 2 the Management Movement
30/34
Hygiene Factors
Herzbergs term for factors such as: Working conditions and Salarywhen these factors
are adequate, people will not be dissatisfied, butneither will they be satisfied.
These factors may eliminate job dissatisfaction butdo not necessarily increase job satisfaction.
Herzberg proposed that his findings indicate that theopposite of satisfaction is no satisfaction and the
opposite of dissatisfaction is no dissatisfaction.
-
8/22/2019 Ch 2 the Management Movement
31/34
Herzbergs Theory
He believed that an individuals attitude toward
his or her work can very well determine success or
failure
Intrinsic factors such as achievement, recognition,and responsibility were related to job satisfaction
When people felt good about their work, they
tended to attribute these characteristics to
themselves.
-
8/22/2019 Ch 2 the Management Movement
32/34
David McClellands
Three-Needs Theory
The three needs are the major motives in work:
The need forAchievement: (nAch) The drive to excel,
to achieve in relation to a set of standards, and to strive
to succeed. The need forPower: (nPow) The need to make others
behave in a way that they would not have behaved
otherwise.
The need forAffiliation: (nAff) The desire for friendlyand close personal relationships.
-
8/22/2019 Ch 2 the Management Movement
33/34
Findings of McClellands Theory McClelland found that some people have a compelling drive
to succeed for personal achievement rather than for therewards of success.
High achievers perform best when they perceive that theyhave a 50-50 chance of success.
They dislike gambling when the odds are high because theyget no satisfaction from happenstance (fluke or accidental)success
They also dislike low odds (high probability of success)because then there is no challenge to their skills.
They like to set goals that stretch themselves a little.
-
8/22/2019 Ch 2 the Management Movement
34/34
J. Stacey Adams Equity Theory
Adams theory that employees perceive what they
get from a job (outcomes) in relation to what they
put into it (inputs) and then compare their input-
outcome ratio with the input-outcome ratios ofrelevant others.
If workers compare themselves, a state of equity
exists.
They believe that their situation is fairthat
justice prevails.