History of Management Theories MGT 3310. The Case of Egypt First large state Centralized government...
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Transcript of History of Management Theories MGT 3310. The Case of Egypt First large state Centralized government...
History of Management TheoriesMGT 3310
History of Management Thought 2
The Case of EgyptFirst large stateCentralized government
◦ Provincial governors (nomarchs)◦ Bureaucrats (taxation, irrigation)◦ Based on writing (first Information Revolution)
Large scale construction projects◦ Pyramids, Sphinx, temples◦ Workforce: thousands of peasants, possibly slaves
(prisoners of war)
Spring 2007
History of Management Thought 3
Sun Tzu and The Art of War Dates uncertain –
◦ Some say he lived ca. 544 BC to 496 BC◦ Others place it closer to 600 BC
A renowned Chinese general The Art of War a work on military strategy, but seen in Asia
as a guide to management Principles:
◦ Moral cause for battle◦ Leadership – wise, courageous, benevolent yet strict◦ Awareness of environmental conditions – events and the playing
field◦ Organization and discipline◦ Espionage
Spring 2007
History of Management Thought 4
The Industrial Revolution – New TechnologyManufacturing
◦Steam engines◦Cotton gin◦Mass production through
standardization and specializationTransportation
◦Steam powered ships◦Railroads
Communications◦Telegraph
Spring 2007
History of Management Thought 5
Large Organizations and New Approaches to ManagementEconomic transformation
◦ Previously – family farms, small workshops◦ After Industrial Revolution – large organizations,
requiring management skillsNew demands on management
◦ Need for professional managers (as opposed to owners)
◦ Need to plan, structure, and schedule activities◦ Push to efficiency◦ Need for worker training and socialization to factory
work
Spring 2007
History of Management Thought 6
The Fortune 500: When Were They Founded?
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Spring 2007
The Classical Approach Lower-Level Management Analysis
◦ Frederick W.Taylor (1856–1915) Work at Bethlehem Steel Co.
◦ Frank Gilbreth (1868–1924) and Lillian Gilbreth (1878–1972)Motion study
“The Right Way“The Wrong Way”
◦ Henry L. Gantt (1861–1919) Scheduling Innovation Rewarding Innovation
F. W. Taylor and Scientific ManagementWorked at Midvale Steel (beginning as a
common laborer, rising to chief engineer, in 6 years)
Identified “soldiering”◦ Workers doing less than they were capable of◦ Due to lack of training, fear of losing work or rate
cutsBegan with time study and incentive plansPig iron study: the right shovel for each job.
History of Management Thought 9
Frank and Lillian Gilbreth: The One Best WayFocus on work simplification and
efficiency◦Reduce time and fatigue (Frank)◦Involve workers (Lillian)
“The One Best Way”
Spring 2007
The Classical Approach Comprehensive Analysis of Management (Administrative Management
Theory)
◦ Henri Fayol (1841–1925) 1. Division of work 2. Authority 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interests to the general interests 7. Remuneration 8. Centralization 9. Scalar chain10. Order11. Equity12. Stability of tenure of personnel13. Initiative14. Esprit de corps (common spirit)
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall2-10
History of Management Thought 11
Henri Fayol French manager (coal mining) Published Industrial and General Administration in
1916 (not translated into English until 1930’s) Elements of management
◦ Planning◦ Organizing◦ Command, Coordination, Control
Fourteen principles Universality of management Management as a skill can be taught
Spring 2007
Max Weber and BureaucracyBureaucracy = management by
the office Bureaucracy
◦ Clearly defined division of labor, authority, responsibility◦ Offices organized in a hierarchy◦ Recordkeeping (organizational memory and continuity separate
from individuals)◦ Selection on the basis of qualifications◦ Officials appointed, not elected◦ Administrators work for fixed salaries, on a career basis◦ Administrators are not owners◦ Administrators subject to impersonal rules, discipline, control
History of Management Thought 13
Limitations◦ Assumed workers were robots without social needs
or higher order needs◦ Assumed all individuals were the same◦ Ignored worker’s potential to contribute ideas, not
just labor◦ Does not adequately emphasize human variables
Conflict Communication Leadership Motivation
Spring 2007
* These are Taylor’s ideas; Gilbreths thought differently
The Behavioral ApproachThe Hawthorne Studies
◦The Relay Assembly Test Room Experiments
◦The Bank Wiring Observation Room Experiment
Recognizing the Human Variable
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall2-14
The Behavioral Approach The Human Relations Movement
Understand:PhysiologicalSafetySocialEsteemSelf-actualization
Topics:
Commitment
Turnover
Motivation
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall2-15
The Management Science Approach
The Beginning of the Management Science Approach
1. Observe
2. Construct
3. Deduce
4. Test
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall2-16
The Management Science Approach
Management Science Today
Characteristics of Management Science Applications
1) Problems studied are complicated
2) Economic implications as guidelines
3) Mathematical models to investigate the decision situation
4) Use of computers
Copyright ©2012 Pearson Education, Inc. Publishing as Prentince Hall2-17
The Contingency ApproachBasically, contingency theory asserts that when managers make a decision, they must take into account all aspects of the current situation and act on those aspects that are key to the situation at hand. Basically, it’s the approach that “it depends.”
1. Perceiving organizational situations as they actually exist
2. Choosing the management tactics best suited to those situations
3. Competently implementing those tactics.Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall
2-18
Maslow’s hierarchy of needsSelf-actualization – advancement,
challenges, opportunities to use skillsEsteem – job title, complimentsBelongingness – compatible work groups,
friends, partiesSafety and security – salary increases,
pension plan, medical plans, insurancePhysiological – salary, office, co. cafeteria
Motivation and LeadershipEarly and mid 1960's: contingency
models of leadership proposed a need for different styles under different circumstances (Fred Fiedler)
1964: Vroom's VIE theory (valence, instrumentality, expectancy) of motivation proposed
Mid 1960's: David McClelland proposed need for achievement theory
Late 1960's: Frederick Herzberg proposed his two-factor theory of motivation (motivators and hygiene factors)
Late 1960's: Edwin Locke outlined his goal setting approach to motivation
The System Approach
A number of interdependent parts functioning as a whole for some purpose.
Types of Systems
1. Closed
2. Open
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall2-21
The System ApproachTomas Hopkins’ six guidelines for
conducting system analysis:
1. The whole should be the main focus of analysis
2. Integration is the key variable in wholeness analysis
3. Modifications weighed in relation to effects on every other part
4. Each part has some role to perform
5. Part and its function determined by its position in the whole
6. All analysis starts with the existence of the whole
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall2-22
Dynamic System and Chaos TheoryReal-time interactionDetermined but not predictableSensitive to initial condition
Example: Group Decision
C
B
A
Group Preference
Test information Lag effect
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0 20 40 60 80 100 120 140 160
Info. Lag
No Info. Lag
Risk and Luck in Chaos System Risk in management
◦Recognize risk◦Estimate loss◦Eliminate risk
Luck plays an important role in business, but it is hard to be identified and analyzed.
Assignment for Week 01