1. Ch.2 Management Yesterday and Today
Welcome back today we start “looking back”...
Ch.2 Management Yesterday and Today
© Emily & Jian, MGTO120 Summer 2006, HKUST

2. © Emily & Jian, MGTO120 Summer 2006, HKUST
Today’s Agenda
Some reminder – rules and expectations
Short review – basic concepts in Ch.1
Ch.2 – development of management ideas
Tutorial –
© Emily & Jian, MGTO120 Summer 2006, HKUST

3. Review—what did we learn last time?
What is management?
Process, people, efficiency, effectiveness
What is an organization?
People, structure, purpose
What do Managers Do? (Management!)
Functions involved (POLC)
Skills required (CHT)
Roles played (IID)
© Emily & Jian, MGTO120 Summer 2006, HKUST

4. Application of knowledge –Cases we analyzed
© Emily & Jian, MGTO120 Summer 2006, HKUST

5. Application of knowledge –Cases we analyzed
Southwest Airline - Mr. Kelleher
You did a great job in your
case analysis!
© Emily & Jian, MGTO120 Summer 2006, HKUST

6. Ch.2 Management Yesterday and Today
“Yesterday” ? Why bother to learn the history, since we don’t major in Management?
© Emily & Jian, MGTO120 Summer 2006, HKUST

7. Ch.2 Management Yesterday and Today
Textbook: “Looking at the management history can help us understand today’s management theory and practice. It can help us see what worked and what didn’t work.”
Emily: “the ‘history’ itself is interesting! and it helps us to THINK!”
© Emily & Jian, MGTO120 Summer 2006, HKUST

8. Management (Robbins & Coulter)
Where We Are Today
Management (Robbins & Coulter)
Part 1
Basic
Concepts
(Ch1)
Part 1
Retrospect
(ch2)
Part 2
Context
(ch3-5)
Part 3
Planning
(ch6-9)
Part 4
Organizing
(Ch10-13)
Part 5
Leading
(Ch 14-17)
Part 6
Controlling
(Ch 18,19)
© Emily & Jian, MGTO120 Summer 2006, HKUST

9. Ch.2 Management Yesterday and Today
Learning objectives – after studying this chapter, you’d be able to:
Describe some ancient evidences of management practice
Describe major approaches to management
Describe the important contributions made by: Taylor, Fayol, Weber and other early advocates of management approaches
Describe how these approaches related to today’s management
Describe the trends and issues facing managers today
© Emily & Jian, MGTO120 Summer 2006, HKUST

10. Development of Major Management Theories
Historical
Background
Scientific
Management
General
Administrative
Theorists
Quantitative
Approach
Management Theories
Industrial
Revolution
Adam Smith
Early Advocates
Hawthorne Studies
Organizational
Behavior
Early Examples
of Management
© Emily & Jian, MGTO120 Summer 2006, HKUST

11. Historical background
Egypt (pyramids)
China (Great Wall)
Wisdom in Bible (Moses)
Adam Smith,1776 “The Wealth of Nations” (example of pin – an exercise for you to think)
Industrial Revolution
© Emily & Jian, MGTO120 Summer 2006, HKUST

12. © Emily & Jian, MGTO120 Summer 2006, HKUST
Ancient management
100,000workers for 20years for a single pyramid – who told each workers what to do and make sure they do it right?
compared to building the Great Wall, building the Pyramids was nothing!
(p. 58)
© Emily & Jian, MGTO120 Summer 2006, HKUST

13. Moses and Management (maybe 4000 BC?)
© Emily & Jian, MGTO120 Summer 2006, HKUST

14. Wealth of Nations Adam Smith, 1776
a workman not educated to this business [pin making] could scarce, perhaps, with his utmost industry, make one pin in a day, and certainly could not make twenty. Now this business is … divided … One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving, the head; to make the head requires two or three distinct operations; to put it on is a peculiar business, to whiten the pins is another; it is even a trade by itself to put them into the paper… (p.7)
© Emily & Jian, MGTO120 Summer 2006, HKUST

15. Major Approaches to Management
Scientific Management
General Administrative Theory
Quantitative Management
Organizational Behavior
Systems Approach
Contingency Approach
© Emily & Jian, MGTO120 Summer 2006, HKUST

16. © Emily & Jian, MGTO120 Summer 2006, HKUST
Scientific Management The “father” of scientific management – Fredrick Winslow Taylor “Principles of Scientific Management” (1911)
Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method.
Scientifically select and then train, teach, and develop the worker.
Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed.
Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.
© Emily & Jian, MGTO120 Summer 2006, HKUST

17. © Emily & Jian, MGTO120 Summer 2006, HKUST
video show
THINK:
What is good? What is not good?
(think and hold the answer to tutorial class)
© Emily & Jian, MGTO120 Summer 2006, HKUST

18. General Administrative Theory
Henri Fayol
Believed that the practice of management was distinct from other organizational functions
Developed fourteen principles of management that applied to all organizational situations
Max Weber
Developed a theory of authority based on an ideal type of organization (bureaucracy)
Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism
© Emily & Jian, MGTO120 Summer 2006, HKUST

19. Fayol’s 14 Principles of Management
Remuneration.
Centralization.
Scalar chain.
Order.
Equity.
Stability of tenure of personnel.
Initiative.
Esprit de corps.
Division of work.
Authority.
Discipline.
Unity of command.
Unity of direction.
Subordination of individual interest to the interests of the organization.
© Emily & Jian, MGTO120 Summer 2006, HKUST

20. Weber’s Ideal Bureaucracy
© Emily & Jian, MGTO120 Summer 2006, HKUST

21. Organizational Behavior
OB — The study of the actions of people at work; people are the most important asset of an organization
Where much of current micro-level management research and human resource management (HRM) come from
Early OB Advocates (late 1800s and early 1900s)
Robert Owen
Hugo Munsterberg
Mary Parker Follett
Chester Barnard
© Emily & Jian, MGTO120 Summer 2006, HKUST

22. Organizational Behavior
The Hawthorne Studies – the most important contribution to the developing of OB field
A series of productivity experiments conducted at Western Electric from 1927 to 1932.
Experimental findings
Productivity unexpectedly increased under imposed adverse working conditions.
The effect of incentive plans was less than expected.
© Emily & Jian, MGTO120 Summer 2006, HKUST

23. © Emily & Jian, MGTO120 Summer 2006, HKUST
The Hawthorne Studies
Dimmer Lights?
Brighter Lights?
video show
© Emily & Jian, MGTO120 Summer 2006, HKUST

24. © Emily & Jian, MGTO120 Summer 2006, HKUST
The Hawthorne Studies
Research conclusion
Social norms, group standards and attitudes strongly influence individual output and work behavior.
people matter
attention to people matters
groups matter
© Emily & Jian, MGTO120 Summer 2006, HKUST

25. Personal Characteristics
The Hawthorne Studies
TASK
PRODUCTIVITY
EMPLOYEE
ATTITUDES
Personal Characteristics
Social Situation
Employees are part of the production system => MACHINES that are replaceable!
Hawthorne Effect
Frederick Taylor
© Emily & Jian, MGTO120 Summer 2006, HKUST

26. © Emily & Jian, MGTO120 Summer 2006, HKUST
Quantitative Management Also called operations research or management science
Focuses on improving managerial decision making by applying: Statistics, optimization models, information models, and computer simulations.
© Emily & Jian, MGTO120 Summer 2006, HKUST

27. Systems Approach The Organization as an Open System
© Emily & Jian, MGTO120 Summer 2006, HKUST

28. Contingency Approach OR situational approach
There is no one universally applicable set of management principles (rules) by which to manage organizations. Organizations face different situations (contingency variables), and require different ways of managing.
Popular Contingency Variables, e.g.: Organization size Routineness of task technology Environmental uncertainty Individual differences
© Emily & Jian, MGTO120 Summer 2006, HKUST

29. For more info. about Management History
James C. Collins & Jerry I. Porras 1994
Built to Last: Successful Habits of Visionary Companies. Harper Business Publishers, NY. HF5386 .C       
Peter F. Drucker 1999
Management Challenges for the 21st Century . Harper Business Publishers, NY.  HD D       
Edgar H. Schein 1992
Organizational Culture and Leadership, 2nd Ed. Jossey-Bass Publishers, San Francisco, CA. HD58.7 .S       
The Bible: c1984
The Holy Bible : containing the Old and New Testaments in the King James version , Exodus 17. Jethro Nashville : Thomas Nelson ,  BS N37 
Pyramid: Parry Dick. 2004
Engineering the Pyramids . Stroud : Sutton. DT63 .P  
Great Wall: Gorbing-King Charles. 1973
Wall of Death, London : Abelard-Schuman. DS 793 G67 G
Taylor, Frederick Winslow, [1967, c1947]
First published 1911 The Principles of Scientific Management. New York : Norton. HD31 .T
Fayol, Henri, c1984
General and industrial management / Henri Fayol ; revised by Irwin Gray . New York : Institute of Electrical and Electronics Engineers. HD31 .F  
Mayo, Elton,
The social problems of an industrial civilization , N.H. : Ayer, HD6331 .M    
Operations Research. Management Science 
Operations Research/Management Science journals (Since 1961). Whippany, N.J. : Executive Sciences Institute  HD O66 
© Emily & Jian, MGTO120 Summer 2006, HKUST

30. Current Trends and Issues (more about this in later chapters)
Globalization
Workforce Diversity
Learning Organizations
Ethics
Entrepreneurship
E-business
Knowledge Management
Quality Management
© Emily & Jian, MGTO120 Summer 2006, HKUST

31. What do we learn from Management Yesterday and Today?
Tutorial
Video, cases, and discussions
© Emily & Jian, MGTO120 Summer 2006, HKUST

32. © Emily & Jian, MGTO120 Summer 2006, HKUST?
© Emily & Jian, MGTO120 Summer 2006, HKUST

33. © Emily & Jian, MGTO120 Summer 2006, HKUST
Homework (remember, this course is to HELP you to think critically, but it is YOU who THINK):
Tutorial
Think about Taylor, Fayol. What are their contributions to management? What kind of workplaces would they create based on their theories? What are the drawbacks in the views?
Review the famous Hawthorne studies. What is it about? What are the findings and conclusions?
Relate history to management today. In your view, how do those different approaches related to current management practices?
© Emily & Jian, MGTO120 Summer 2006, HKUST

34. © Emily & Jian, MGTO120 Summer 2006, HKUST
Next class (this Fri.)...
Tutorial
Next time, we will talk about “the manger’s terrain”. We will cover chapter 3 & 5 – culture & ethics issues.
Will begin class at 2:00pm sharp. Probably with PRS questions from Chapter 2 and 3!
© Emily & Jian, MGTO120 Summer 2006, HKUST