1. Historical foundations of management
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2. Historical foundations of management
Study questions
What can be learned from classical management thinking?
What ideas were introduced by the human resource approaches?
What is the role of quantitative analysis in management?
What is unique about the systems view and contingency thinking?
What are continuing management themes of the 21st century?
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3. Major schools of management thought
Classical management approaches
Developing universal principles for use in various management situations.
Behavioural management (or human resource) approaches
Human needs, the work group and social factors in the workplace.
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4. Major schools of management thought
Quantitative management approaches
Use of mathematical techniques for management problem solving.
Modern approaches
Systems and contingency views of organisations.
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5. What can be learned from classical management thinking?
Classical approaches to management include:
Scientific management – emphasizes careful selection & training of workers, & supervisory support
Administrative principles – based on attempts to document & understand the experiences of successful managers
Bureaucratic organisation – is a rational & efficient organisation founded on logic, order & legitimate authority
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6. What can be learned from classical management thinking?
I. Scientific management (Frederick Taylor) “Father of scientific management”
Design jobs properly, standardised work processes and proper working conditions for every job.
Carefully select workers with the right abilities for the job.
Carefully train workers to do the job and provide proper incentives.
Support workers by carefully planning their work and removing obstacles.
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7. What can be learned from classical management thinking?
Scientific management (the Gilbreths) Frank & Lillian
Motion study
Science of reducing a job or task to its basic physical motions
Eliminating wasted motions improves performance.
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8. Scientific management
Henry Gantt’s contributions, which include:
(a) an innovative task and bonus wage scheme in which workers and supervisors received bonuses for exceeding standards;
(b) the Gantt chart which graphically depicts the scheduling of tasks required to complete a project.
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9. What can be learned from classical management thinking?
II. Administrative principles (Henri Fayol)
Rules of management
Foresight — to complete plan of action for the future
Organisation — to provide and mobilise resources to implement the plan
Command — to lead, select and evaluate workers to get the best work towards the plan
Coordination — to fit diverse efforts together, ensure information is shared and problems solved
Control — to make sure things happen according to plan and to take necessary corrective action.
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10. What can be learned from classical management thinking?
Administrative principles (Henri Fayol)
Key principles of management
Scalar chain - there should be a clear and unbroken line of communication from the top to the bottom of the organisation
Unity of command - each person should receive orders from only one boss.
Unity of direction - one person should be in charge of all activities that have the same performance objective
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11. What can be learned from classical management thinking?
Administrative principles (Mary Parker Follett)
- Her insights about groups and human cooperation include the following:
Groups are mechanisms through which individuals could combine their talents for a greater good.
Organisations as cooperating ‘communities’ of managers and workers
The manager’s job is to help people in the organisation cooperate and achieve an integration of interests.
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12. What can be learned from classical management thinking?
Administrative principles (Mary Parker Follett)
Forward-looking management insights
Employee ownership creates sense of collective responsibility (precursor of employee ownership, profit sharing and gain sharing).
Business problems involve a variety of interrelated factors (precursor of systems thinking).
Private profits relative to public good (precursor of managerial ethics and social responsibility).
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13. What can be learned from classical management thinking?
III. Bureaucratic organisation (Max Weber)
Bureaucracy
An ideal, intentionally rational and very efficient form of organisation.
Based on principles of logic, order and legitimate authority.
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14. What can be learned from classical management thinking?
Characteristics of bureaucratic organisations:
Clear division of labor
Clear hierarchy of authority
Formal rules and procedures
Impersonality
Careers based on merit.
Possible disadvantages of bureaucracy:
Excessive paperwork or ‘red tape’
Slowness in handling problems
Rigidity in the face of shifting needs
Resistance to change
Employee apathy.
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15. What ideas were introduced by the human resource approaches?
Behavioural management (or human resource) approaches include:
Hawthorne Studies
Maslow’s theory of human needs
McGregor’s Theory X and Theory Y
Argyris’s theory of adult personality.
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16. What ideas were introduced by the human resource approaches?
I. Hawthorne Studies conducted by Elton Mayo
Initial study examined how economic incentives and physical conditions at workplace affected worker output
No consistent relationship found
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17. What ideas were introduced by the human resource approaches?
Hawthorne Studies
2. Relay assembly test-room studies
Manipulated physical work conditions to assess impact on output
Designed to minimise the ‘psychological factors’ of previous experiment
Group atmosphere and participative supervision accounted for increased productivity.
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18. What ideas were introduced by the human resource approaches?
Hawthorne Studies
3.Employee attitudes, interpersonal relations and group processes
Some things satisfied some workers but not others.
People restricted output to adhere to group norms.
Lessons of the Hawthorne Studies
People’s feeling, attitude & relationships with co-workers influence performance
Hawthorne effect — people who are singled out for special attention perform as expected.
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19. What ideas were introduced by the human resource approaches?
II. Maslow’s theory of human needs
A need is a physiological or psychological deficiency a person feels compelled to satisfy.
Need levels
Physiological
Safety
Social
Esteem
Self-actualisation.
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20. What ideas were introduced by the human resource approaches?
Maslow’s theory of human needs
Deficit principle
People act to satisfy “deprived” needs CONTRARY a satisfied need is not a motivator of behaviour.
Progression principle
A need becomes a motivator once the preceding lower-level need is satisfied.
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21. BnR-Peng.Manajemen-Chap-4
What ideas were introduced by the human resource approaches? III. Douglas McGregor
McGregor’s Theory X assumes that workers:
dislike work
lack ambition
are irresponsible
resist change
prefer to be led.
McGregor’s Theory Y assumes that workers are:
willing to work
capable of self-control
willing to accept responsibility
imaginative and creative
capable of self-direction.
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22. What ideas were introduced by the human resource approaches?
McGregor’s Theory X and Theory Y
Managers create self-fulfilling prophecies.(that is, through their behaviour they create situations where subordinates act to confirm their expectations)
How do managers create positive self – fulfilling prophecy?
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23. What ideas were introduced by the human resource approaches?
IV. Chris Argyris’s theory of adult personality
Classical management principles and practices discourage worker independence and are inconsistent with the mature adult personality.
Management should accommodate the mature personality.
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24. What ideas were introduced by the human resource approaches?
Argyris’s theory of adult personality
Management practices consistent with the mature adult personality:
Increasing task responsibility
Increasing task variety
Using participative decision making.
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25. What is the role of quantitative analysis in management?
1.Management science (operations research) foundations
Scientific application of mathematical techniques to management problems
Techniques and applications include:
Mathematical forecasting - for making future projections that are useful in the planning process.
Inventory modeling - for helping to control inventories by establishing how much to order and when
Linear programming - for determining how to best allocate scarce resources among competing uses
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26. What is the role of quantitative analysis in management?
Queuing theory - for allocating service personnel or workstations to minimise customer waiting time and service cost
Network models - for breaking large tasks into smaller components to allow for better analysis, planning, and control of complex projects.
Simulations - for developing models of problems so different solutions under various assumptions can be tested.
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27. What is the role of quantitative analysis in management?
Quantitative analysis today
Use of staff specialists to help managers apply techniques
Software and hardware developments have expanded potential quantitative applications to managerial problems.
Good managerial judgement and appreciation for human factors must accompany use of quantitative analysis.
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28. What is unique about the systems view and contingency thinking?
According to the modern approaches to management:
- people have multiple and varied needs and talents that change over time
- therefore organisation & managers should respond to individual differences with a wide variety of managerial strategies and job opportunities
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29. What is unique about the systems view and contingency thinking?
Systems thinking
System
Collection of interrelated parts that function together to achieve a common purpose
Subsystem
A smaller component of a larger system
Open system
An organisation that interacts with its environments in the continual process of transforming resource inputs into outputs.
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30. What is unique about the systems view and contingency thinking?
Tries to match managerial responses with problems and opportunities unique to different situations
No ‘one best way’ to manage, managers need to understand situational differences & respond to them in appropriate ways
Most appropriate way to manage depends on the situation.
IF = THEN
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31. What are continuing management themes of the 21st century?
1.Quality and performance excellence
Managers and workers in progressive organisations are quality conscious.
Total quality management (TQM)
Comprehensive approach to continuous quality improvement for a total organisation
Creates context for the value chain (a specific sequence of activities that transform raw materials into a finished good or services)
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32. What are continuing management themes of the 21st century?
Eight attributes of performance excellence:
Bias towards action - making timely decisions and getting things done
Closeness to the customer - knowing customer needs and valuing customer satisfaction.
Autonomy and entrepreneurship - supporting innovation, change, and risk taking.
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33. BnR-Peng.Manajemen-Chap-4
Productivity through people - valuing human resources as keys to quality and performance.
Hands-on and value-driven - having a clear sense of organisational purpose.
Sticking to the knitting - focusing resources and attention on what the organisation does best.
Simple form and lean staff - minimising levels of management and staff personnel.
Simultaneous loose-tight properties - allowing flexibility while maintaining control.
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34. What are continuing management themes of the 21st century?
2.Global awareness
Pressure for quality and performance excellence is created by a highly competitive global economy.
Has fostered increasing interest in new management concepts:
Process reengineering – process redesign
Virtual organisations
Agile factories
Network firms
Adoption of Theory Z management practices.
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35. What are continuing management themes of the 21st century?
Theory Z – describes a management framework emphasising long-term employment & teamwork, attention to career planning , employee involvement, that are found in the Japanese models.
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36. What are continuing management themes of the 21st century?
3. Learning organisation
Contemporary businesses must learn to become learning organisations.
These are organisations operating with values and systems that result in continuous change and improvement based on the lessons of experience.
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37. What are continuing management themes of the 21st century?
Learning organisation success depends on:
culture that emphasises information, teamwork, empowerment, participation and leadership
special leadership qualities
The 21st century manager must be:
a global strategist
a master of technology
an effective politician
an inspiring leader.
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