Contemporary Management NEW ERA OF MANAGEMENT LECTURE 2 Dr. Mohamed Hesham Mansour.

Contemporary ManagementNEW ERA OF MANAGEMENT

LECTURE 2

Dr. Mohamed Hesham Mansour

Copyright © 2008. All rights reserved.

2

“I forgetwhat I was

taught, I onlyrememberwhat I’velearnt.”

The Evolution of Management Thinking

Cha

pter

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WHY HISTORY MATTERS TO MANAGERS?

A study of the past contributes to understanding both the present and the future??!!!


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Historical Perspective

Provides a context or environment Develops an understanding of societal impact Achieves strategic thinking Improves conceptual skills

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


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Management Perspectives Over Time

1930Humanistic Perspective

19901890Classical 1940

1950

2000Systems Theory

2000

2010The Technology-Driven Workplace

1990

2010The Learning Organization

1970Contingency Views

2000

1980Total Quality Management

2000

1940Management Science Perspective

1990

20101870

Exhibit 2.1, p.44


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Classical Perspective: 3000 B.C.

The Factory system in the 1800s● Rational, scientific approach to management –

make organizations efficient operating machines ● Scientific Management● Bureaucratic Organizations● Administrative Principles


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Scientific Management: Taylor 1856-1915

“In the past the man has been first. In the future, the system must be first”

Correct movements, tools and sequencing instead of rule-of-thumb

General Approach Developed standard method for performing each job. Selected workers with appropriate abilities for each job. Trained workers in standard method. Supported workers by planning work and eliminating

interruptions. Provided wage incentives to workers for increased output. Henry Gantt


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Scientific Management: Frank& Lillian Gilbreth 1868-1924

“Time and motion study”

General Approach Efficiency. The one best way to do work. Brick layers versus surgical operating table. First lady of management with12 children. Cheaper by the dozen Industrial psychology& HR.


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Scientific Management

Contributions Demonstrated the importance of compensation for performance. Initiated the careful study of tasks and jobs. Demonstrated the importance of personnel and their training.

Criticisms Did not appreciate 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


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Bureaucracy Organizations

Max Weber 1864-1920 Prior to Bureaucracy Organizations

– European employees were loyal to a single individual rather than to the organization or its mission

– Resources used to realize individual desires rather than organizational goals

Systematic approach –looked at organization as a whole


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Bureaucracy Organizations

Positions organized in a hierarchy of authority

Managers subject to Rules and procedures

that will ensure reliable predictable behavior

Personnel are selected and promoted based

on technical qualifications

Administrative acts and decisions recorded

in writing

Management separate from the ownership of the organization

Division of labor with Clear definitions of

authority and responsibility

Exhibit 2.3, p. 49


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Administrative Principles

Contributors: Henri Fayol, Mary Parker, and Chester I. Barnard 1841-1925

Focus: – Organization rather than the individual– Delineated the management functions of planning,

organizing, commanding, coordinating, and controlling


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Henri Fayol 1841-1925

Division of labor Authority& Responsibility Discipline Unity of command Unity of direction Subordination of

individual interests Remuneration

Division of labor Authority& Responsibility Discipline Unity of command Unity of direction Subordination of

individual interests Remuneration

Centralization Scalar chain Order Equity Stability and

tenure of staff Initiative Esprit de corps

Centralization Scalar chain Order Equity Stability and

tenure of staff Initiative Esprit de corps

14 General Principles of Management


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Mary Parker Follett 1868-1933

Importance of common super-ordinate goals for reducing conflict in organizations

– Popular with businesspeople of her day– Overlooked by management scholars– Her ideas served as a contrast to scientific management

and are reemerging as applicable for modern managers in dealing with rapid change in global environment

Leadership – importance of people vs. engineering techniques

Ethics - Power - Empowerment


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Chester Barnard 1886-1961

Informal Organization– Cliques– Naturally occurring social groupings– Organizations are not machines

Acceptance Theory of Authority– Free will– Can choose to follow management orders


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Humanistic Perspective

Emphasized understanding human behavior, needs, and attitudes in the workplace

●Human Relations Movement

●Human Resources Perspective

●Behavioral Sciences Approach


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Human Relations Movement- OB

Emphasized satisfaction of employees’

basic needs as the key to increased

worker productivity

DAIRY FARM VIEW OF MANGEMENT


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Hawthorne Studies

“Is it light or something else” Ten year study Four experimental & three control groups Five different tests Test pointed to factors other than illumination for productivity 1st Relay Assembly Test Room experiment, was

controversial, test lasted 6 years Elton Mayo Interpretation: money was not the cause of increased output Factor that increased output, Human Relations


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Human Resources Perspective

Suggests jobs should be designed to meet

higher-level needs by allowing workers to

use their full potential


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Physiological

Safety

Belongingness

Esteem

Self-actualization

Abraham Maslow’s Hierarchy of Needs

Based on needs satisfaction

1908-1970


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Dislikes work& will avoid it Must be coerced, controlled,

directed, or threatened with punishment

Prefers direction, avoid responsibility, little ambition, want security

Do not dislike work Self direction and self control Seeks responsibility Imagination, creativity widely

distributed Intellectual potential only

partially utilized

Douglas McGregor Theory X & Y

Theory X Assumptions Theory Y Assumptions

1906-1964


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Douglas McGregor Theory X & Y

Few companies today still use Theory X

Many are trying Theory Y techniques

Experiential Exercise: Theory X and Theory Y Scale


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Behavioral Sciences Approach

Applies social science in an organizational context

Draws from economics, psychology, sociology, anthropology, and other disciplines– Understand employee behavior and interaction

in an organizational setting– OD – Organization Development

Sub-field of the Humanistic Management Perspective


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Management Science Perspective

Emerged after WW II Applied mathematics, statistics, and other quantitative

techniques to managerial problems Operations Research – mathematical modeling

Operations Management – specializes in physical production of goods or services

Information Technology – reflected in management information systems


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Recent Historical Trends

● Systems Theory

● Contingency View

● Total Quality Management (TQM)


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Systems View of Organizations

Exhibit 2.5, p. 58


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Systems View of Organizations

Open systems VS closed systems- interactions Entropy- run down and die Synergy- 1+1=3 Subsystems- dependency

Exhibit 2.5, p. 58


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Contingency View of Management

Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand


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Total Quality Management - TQM

W. Edwards Deming Focuses on managing the total organization

to deliver quality to customers– Employee involvement– Customer focus– Benchmarking– Continuous improvement


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Elements of a Learning Organization

Learning Organization

Open Information

Empowered Employees

Team-Based Structure

Exhibit 2.7, p. 61


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Types of E-Commerce

Business-to-Consumer B2C Selling Products and

Services Online

Business-to-Business B2B Transactions Between

Organizations

Consumer-to-Consumer C2C Electronic Markets

Created by Web-Based Intermediaries

Exhibit 2.8, p. 63


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Assignment # 2 (GROUPS) (21/02/2010)

Prepare and present chapter 3

“The environment and corporate culture”


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THANK YOU

Contemporary Management NEW ERA OF MANAGEMENT LECTURE 2 Dr. Mohamed Hesham Mansour.

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