1. Contemporary Management NEW ERA OF MANAGEMENT
LECTURE 2
Dr. Mohamed Hesham Mansour

2. “I forget
what I was
taught, I only
remember
what I’ve
learnt.”

3. The Evolution of Management Thinking
Chapter 2

4. WHY HISTORY MATTERS TO MANAGERS?
A study of the past contributes to understanding both the present and the future??!!!

5. Historical Perspective
Provides a context or environment
Develops an understanding of societal impact
Achieves strategic thinking
Improves conceptual skills
Social, political, and economic forces have influenced organizations and the practice of management

6. Management Perspectives Over Time
Exhibit 2.1, p.44
2000
2010
The Technology-Driven Workplace
1990
2010
The Learning Organization
1980
Total Quality Management
2000
1970
Contingency Views
2000
1950
2000
Systems Theory
1940
Management Science Perspective
1990
1930
Humanistic Perspective
1990
1890
Classical
1940
2010
1870

8. Classical Perspective: 3000 B.C.
The Factory system in the 1800s
Rational, scientific approach to management – make organizations efficient operating machines
Scientific Management
Bureaucratic Organizations
Administrative Principles

9. Scientific Management: Taylor 1856-1915
“In the past the man has been first. In the future, the system must be first”
Correct movements, tools and sequencing instead of rule-of-thumb
General Approach
Developed standard method for performing each job.
Selected workers with appropriate abilities for each job.
Trained workers in standard method.
Supported workers by planning work and eliminating interruptions.
Provided wage incentives to workers for increased output.
Henry Gantt

10. Scientific Management: Frank& Lillian Gilbreth 1868-1924
“Time and motion study”
General Approach
Efficiency.
The one best way to do work.
Brick layers versus surgical operating table.
First lady of management with12 children.
Cheaper by the dozen
Industrial psychology& HR.

11. Scientific Management
Contributions
Demonstrated the importance of compensation for performance.
Initiated the careful study of tasks and jobs.
Demonstrated the importance of personnel and their training.
Criticisms
Did not appreciate 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

12. Bureaucracy Organizations
Max Weber
Prior to Bureaucracy Organizations
European employees were loyal to a single individual rather than to the organization or its mission
Resources used to realize individual desires rather than organizational goals
Systematic approach –looked at organization as a whole

13. Bureaucracy Organizations
Division of labor
with Clear definitions of
authority and responsibility
Personnel are selected
and promoted based
on technical
qualifications
Positions organized
in a hierarchy of authority
Managers subject to
Rules and procedures
that will ensure reliable
predictable behavior
Administrative acts
and decisions recorded
in writing
Management separate
from the ownership
of the organization
Exhibit 2.3, p. 49

14. Administrative Principles
Contributors: Henri Fayol, Mary Parker, and Chester I. Barnard
Focus:
Organization rather than the individual
Delineated the management functions of planning, organizing, commanding, coordinating, and controlling

15. Henri Fayol 1841-1925 Division of labor Authority& Responsibility
14 General Principles of Management
Division of labor
Authority& Responsibility
Discipline
Unity of command
Unity of direction
Subordination of individual interests
Remuneration
Centralization
Scalar chain
Order
Equity
Stability and tenure of staff
Initiative
Esprit de corps

16. Ethics - Power - Empowerment
Mary Parker Follett
Importance of common super-ordinate goals for reducing conflict in organizations
Popular with businesspeople of her day
Overlooked by management scholars
Her ideas served as a contrast to scientific management and are reemerging as applicable for modern managers in dealing with rapid change in global environment
Leadership – importance of people vs. engineering techniques
Ethics - Power - Empowerment

17. Chester Barnard 1886-1961 Informal Organization
Cliques
Naturally occurring social groupings
Organizations are not machines
Acceptance Theory of Authority
Free will
Can choose to follow management orders

19. Humanistic Perspective
Emphasized understanding human behavior, needs, and attitudes in the workplace
Human Relations Movement
Human Resources Perspective
Behavioral Sciences Approach

20. Human Relations Movement- OB
Emphasized satisfaction of employees’ basic needs as the key to increased worker productivity
DAIRY FARM VIEW OF MANGEMENT

21. Hawthorne Studies “Is it light or something else” Ten year study
Four experimental & three control groups
Five different tests
Test pointed to factors other than illumination for productivity
1st Relay Assembly Test Room experiment, was controversial, test lasted 6 years
Elton Mayo
Interpretation: money was not the cause of increased output
Factor that increased output, Human Relations

22. Human Resources Perspective
Suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential

23. Based on needs satisfaction
Abraham Maslow’s
Hierarchy of Needs
Self-actualization
Esteem
Belongingness
Safety
Physiological
Based on needs satisfaction

24. Douglas McGregor Theory X & Y
Theory X Assumptions
Theory Y Assumptions
Dislikes work& will avoid it
Must be coerced, controlled, directed, or threatened with punishment
Prefers direction, avoid responsibility, little ambition, want security
Do not dislike work
Self direction and self control
Seeks responsibility
Imagination, creativity widely distributed
Intellectual potential only partially utilized

25. Douglas McGregor Theory X & Y
Few companies today still use Theory X
Many are trying Theory Y techniques
Experiential Exercise: Theory X and Theory Y Scale

27. Behavioral Sciences Approach
Sub-field of the Humanistic Management Perspective
Applies social science in an organizational context
Draws from economics, psychology, sociology, anthropology, and other disciplines
Understand employee behavior and interaction in an organizational setting
OD – Organization Development

28. Management Science Perspective
Emerged after WW II
Applied mathematics, statistics, and other quantitative techniques to managerial problems
Operations Research – mathematical modeling
Operations Management – specializes in physical production of goods or services
Information Technology – reflected in management information systems

29. Recent Historical Trends
Systems Theory
Contingency View
Total Quality Management (TQM)

30. Systems View of Organizations
Exhibit 2.5, p. 58

31. Systems View of Organizations
Open systems VS closed systems- interactions
Entropy- run down and die
Synergy- 1+1=3
Subsystems- dependency
Exhibit 2.5, p. 58

32. Contingency View of Management
Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand

33. Total Quality Management - TQM
W. Edwards Deming
Focuses on managing the total organization to deliver quality to customers
Employee involvement
Customer focus
Benchmarking
Continuous improvement

34. Elements of a Learning Organization
Team-Based Structure
Learning Organization
Empowered Employees
Open Information
Exhibit 2.7, p. 61

35. Types of E-Commerce Business-to-Consumer B2C Selling Products and
Services Online
Consumer-to-Consumer C2C
Electronic Markets
Created by Web-Based Intermediaries
Business-to-Business B2B
Transactions Between Organizations
Exhibit 2.8, p. 63

36. Assignment # 2 (GROUPS) (21/02/2010)
Prepare and present chapter 3
“The environment and corporate culture”

37. THANK YOU