1. EVOLUTION OF MANAGEMENT MANAGEMENT YESTERDAY AND TODAY

2. Studying history is a way to achieve strategic thinking, see the big picture and improve conceptual skills. Social, political and economic forces have influenced organizations and the practice of management. 1) Social forces – Refer to those aspects of a culture that guide and influence relationships among people. 2) Political forces –Refer to the influence of political and legal institutions on people and organizations. 3) Economic forces –Pertain to the availability, production and distribution of resources in a society.

3. Management Perspectives over Time 1)Classical Perspective – Scientific Management – Bureaucratic Organization – Administrative Principles 2)Humanistic Perspective – Human Relations Movement – Human Resources Perspective – Behavioral Sciences Approach 3)Management Science Perspective 4)Systems Theory 5)Contingency View 6)Total Quality Management 7)The Learning Organization 8)The Technology-Driven Workplace

4. Classical Perspective Classical Perspective The earliest study of managementThe earliest study of management Emerged during the nineteenth and early twentieth centuriesEmerged during the nineteenth and early twentieth centuries Contains 3 subfields, each with a slightly different emphasis:Contains 3 subfields, each with a slightly different emphasis: 1) Scientific management 2) Bureaucratic organizations 3) Administrative principles

5. 1) Scientific Management Scientific Management: Scientific Management: emphasized the scientific study of work methods to improve the productivity of individual workers Two of its chief proponents were Frederick W. Taylor, & Frank and Lillian Gilbreth

6. Frederick W. Taylor The “father” of scientific management The theory of scientific management – Using scientific methods to define the “one best way” for a job to be done: Putting the right person on the job with the correct tools and equipment. Having a standardized method of doing the job. Providing an economic incentive to the worker. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

7. Management Today How Do Today’s Managers Use Scientific Management? – Use time and motion studies to increase productivity – Hire the best qualified employees – Design incentive systems based on output Copyright © 2005 Prentice Hall, Inc. All rights reserved.

8. Characteristic of Scientific Management General Approach – Developed standard method for performing each job – Selected workers with appropriate abilities for each job – Trained workers in standards methods – Supported workers by planning their work and eliminating interruptions – Provide wage incentives to workers for increased output.

9. Contributions – Demonstrated the importance of compensation for performance – Initiated the careful study of tasks and jobs – Demonstrated the importance of personnel selection and training Criticism – Did not appreciate the 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 and suggestions

10. 2) Bureaucracy Organizations 1.Positions organized in a hierarchy of authority 2.Managers subject to rules and procedures that will ensure reliable predictable behavior 3.Management separate from the ownership of organization 4.Administrative acts and decisions recorded in writing 5.Personnel selected and promoted based on technical qualifications 6.Division of labor, with clear definitions of authority and responsibility. To Weber, a bureaucracy was a rational, efficient ideal organization based on principles of logic—he felt good organizations should have six bureaucratic features:

11. 3) Administrative Management Administrative Management: Administrative Management: concerned with managing the total organization Among the pioneering theorists were Henry Fayol & Max Weber

12. Henry Fayol and the Functions of Management Henry Fayol Henry Fayol was the first to systematize management behavior – he was the first to identify the major functions of management: planning, organizing, leading, controlling, as well as coordinating and commanding. Management philosophy: Unity of command – Each subordinate receives orders from one – and only one – superior Division of work – Managerial and technical work are amenable to specialization to produce more and better work with the same amount of effort. Unity of Direction – Similar activities in an organization should be grouped together under one manager. Scalar chain – A chain of authority extends from the top to the bottom of the organization and should include every employee.

13. Emphasized the importance of understanding human behaviors, needs and attitudes in the workplace as well as social interactions and group processes. Humanistic Perspective

14. 1) The Human Relations Movement Proposed that better human relations could increase worker productivity. One of the earliest to study motivation, Maslow proposed his “hierarchy of human needs” in 1943. 2) Human Resources Perspective Maintained an interest in worker participation and considerate leadership but shifted the emphasis to consider the daily tasks that people perform. Combines prescriptions for design of job tasks with theories of motivation. This will allow workers to use their full potential.

15. Maslow’s Hierarchy of Needs

16. 3) Behavioral Science Approach Behavioral Science Behavioral Science relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers. Behavioral Science draws from sociology, psychology, anthropology, economics and other disciplines to understand employee behavior and interaction in an organizational setting.

17. The Human Relations Movement: Douglas McGregor & Theory X versus Theory Y Pessimistic negative view towards workersPessimistic negative view towards workers Workers are irresponsibleWorkers are irresponsible Workers are resistant to changeWorkers are resistant to change Workers lack ambition, hate to workWorkers lack ambition, hate to work Workers would rather be led than leadWorkers would rather be led than lead Optimistic positive view of workers: human relations proponents’ viewOptimistic positive view of workers: human relations proponents’ view Workers are capable of accepting responsibilityWorkers are capable of accepting responsibility Workers are capable of self- directionWorkers are capable of self- direction Workers are capable of self- controlWorkers are capable of self- control Workers are capable of being imaginative and creativeWorkers are capable of being imaginative and creative Theory X Y Theory Y

18. Management Science Perspective Management Science Management Science focuses on using mathematics to aid in problem solving and decision making. Suitable for large scale business firms.Suitable for large scale business firms. Example: forecasting, inventory modeling, linear and nonlinear programming, scheduling and break-even analysis.Example: forecasting, inventory modeling, linear and nonlinear programming, scheduling and break-even analysis.

19. Recent Historical Trends There are 2 recent trends that grew out of the humanistic perspective: 1) Systems Theory 2)Contingency View

20. The Systems Theory The Systems Theory The Systems Theory regards the organization as a system of interrelated parts By adopting this perspective you can look at your organization in two ways 1.A collection of subsystems— parts making up the whole system 2.A part of the larger environment

21. environmentInput The people, money, information, equipment and materials required to produce and organization’s goods or services Example: For a jewelry designer- designer money, artistic talent, gold and silver tools, marketing expertise Transformational Process The organization’s capabilities in management and technology that are applied to converting inputs to outputs Example: Designer’s management skills (planning, organizing, leading, controlling) gold and silver smithing tools and expertise, website for marketing Output The products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization Example: Gold and silver rings, bracelets, etc. Feedback Information about the reaction of the environment to the outputs that affect the inputs Example: Web customers like Africa style designs, dislike imitation Old English designs

22. OPEN AND CLOSED SYSTEMS Open System Open System continually interacts with its environment Closed System Closed System has little interaction with its environment; it receives very little feedback from the outside

23. The Contingency View –The Contingency View –The Contingency View emphasizes that a manager’s approach should vary according to—that is, be contingent on—the individual and the environmental situation –Also sometimes called the situational approach. –There is no one universally applicable set of management principles (rules) by which to manage organizations. –Organizations are individually different, face different situations (contingency variables), and require different ways of managing.

24. Question Based on your experience at work or school, describe some ways in which the principles of scientific management and bureaucracy are still used in organizations. Do you believe these characteristics will ever cease to be a part of organizational life? Discuss.