1. Management History Chapter 1
Chapter 1
Management History
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2. Definition of Management
Definition of Management
The attainment of organizational goals in an effective and efficient manner through:
Planning,
Organizing,
Leading, and
Controlling of organizational resources.
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3. Ex 1.1 The Process of Management
Planning
Leading
Resources
Controlling
Organizing
Performance
Human
Financial
Raw Materials
Technological
Information
Attain goals
Products
Services
Efficiency
Effectiveness
Use influence to motivate employees
Select goals and ways to attain them
Assign responsibility for task accomplishment
Monitor activities and make corrections
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4. Where did these definitions come from?
Where did these definitions come from?
We didn’t just begin with a complicated definition of management. What are the origins of our thinking about management?
“A historical perspective on management provides a context in which to interpret current opportunities and problems” p. 28
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5. Management & Organization
Management & Organization
Social Forces … values, needs, and standards of behavior.
Political Forces … influence of political and legal institutions on people & organizations.
Economic Forces … forces that affect the availability, production, & distribution of a society’s resources.
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6. Ex. 1.7 Management Perspectives Over Time (adapted)
Ex. 1.7 Management Perspectives Over Time (adapted)
The Technology-Driven Workplace
The Learning Organization
Total Quality Management
Contingency Views
Systems Theory
Management Science Perspective
Humanistic Perspective
Classical Perspective
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7. Classical Perspective
Emphasized a rational, scientific approach to the study of management.
Sought to make organizations efficient.
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8. Classical Perspective Three Subfields
Classical Perspective Three Subfields
Scientific management (Taylor)
Bureaucratic Organizations (Weber)
Administrative Principles (Fayol)
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9. Characteristics of Scientific Management
General Approach
Developed standard method for performing work.
Selected workers with appropriate abilities for job.
Trained workers in standard method.
Supported worker by planning and eliminating interruptions.
Provided wage incentives for increased output.
Advantages?
Disadvantages?
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10. Elements of Bureaucracy
Labor is divided with clear definitions of authority and responsibility.
Positions are in hierarchy of authority.
Personnel are selected and promoted based on qualifications.
Acts and decisions are recorded in writing.
Management is separate from ownership.
Rules and procedures ensure reliable & predictable behavior. Rules are impersonal and uniformly applied.
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11. In-Class Exercise
List 2 organizations that are successful bureaucracies.
Which elements of Bureaucracy are used at the organization you listed?
Think of organizations that we label “Bureaucracy” – but don’ t mean it in a positive way. What do those organizations do wrong? Where do they fall short in practicing the elements of Bureaucracy as defined by Weber?
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12. Administrative Principles
Contributors to this approach include Henri Fayol & Mark Parker Follet.
Focused on the organization rather than the individual.
Delineated the management functions of planning, organizing, coordinating (leading) and controlling.
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13. Fayol’s 14 Points Division of work Authority Discipline
Unity of Command
Unity of Direction
Subordination of individual interest for the common good.
Remuneration
Centralization
Scalar Chain
Order
Equity
Stability of tenure of staff.
Initiative
Esprit de Corps
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14. Humanistic Perspective
Humanistic Perspective
Emphasized understanding human behavior.
Dealt with needs & attitudes in the workplace.
Truly effective control comes from within the individual worker rather than authoritarian control.
Hawthorne Studies brought this perspective to forefront.
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15. The Hawthorn Studies
The Hawthorne Studies were conducted from 1927 to 1932 at the Western Electric Hawthorne Works in Chicago, where Harvard Business School professor Elton Mayo examined productivity and work conditions.
The studies grew out of preliminary experiments at the plant from 1924 to 1927 on the effect of light on productivity.
Those experiments showed no clear connection between productivity and the amount of illumination but researchers began to wonder what kind of changes would influence output. Experimenter Effect (Hawthorne Effect) & Social Effect.
Bank Wiring Room Experiment – ability of group to self-manage and influence org. goals.
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16. Human Resource Perspective
Emphasizes understanding human behavior, needs, and attitudes in the workplace.
Combines design of job tasks with theories of motivation.
Maintains an interest in worker participation.
Considers the daily tasks people perform.
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17. Management Science Perspective
Emerged after WWII.
Distinguished for applications of mathematics and statistics to problem solving.
Operations research, Operations Management, Management Information Systems.
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18. Feedback from the Environment
Systems Theory
Systems Theory
Inputs
Transformation
Outputs
Feedback from the Environment
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19. Systems Theory
Principles of Systems theory applied to business organizations consists of 4 characteristics:
Open vs. Closed systems. Which one applies to business?
Entropy
Synergy
Subsystems
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20. In-Class Exercise
McDonald’s as a System.
Explain McDonald’s French Fry Process based on Systems Theory:
What are the inputs?
Describe the transformation process?
What are the outputs?
What type of feedback might McDonald’s receive from the environment?
How might this feedback alter the management decisions about the french fry process in the future?
What could happen if McDonald’s management ignores the feedback from the environment and fails to adapt its process?
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21. Total Quality Management (TQM)
Philosophy of managing the entire organization for continuous improvement. Characterized by:
Employee involvement
Focus on the customer
Benchmarking
Continuous Improvement
Attributed to W. Edwards Deming. Who?
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22. So Why Does Management History Matter?
Do we use Scientific Management today? Where? Why?
Do we use Bureaucracy today? Where? Why?
Do we use the Human Perspective today? Where? Why?
Management science? System theory? TQM?
So why does Management History Matter? It’s part of the workplace we will manage TODAY.
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