GOOD MORNING

The conventional definition of management is getting work done through people, but real management is developing people through work.

INTRODUCTION TO EVOLUTION OF MANAGEMENT THOUGHT

Environmental Factors Influencing Management Thought

Economic Influences
The availability, production, and distribution of resources within a society.

Social Influences
The aspects of a culture that influence interpersonal relationships.

Political Influences
The impact of political institutions on individuals and organizations.

 Technological Influences
The advances and refinements in any of the devices that are used in conjunction with conducting business.

Global Influences
The pressures to improve quality, productivity, and costs as organizations attempt to compete in the worldwide marketplace.

Chronological Development of Management Perspectives

The Evolution of Management Theory

Classical Perspective: Rational, scientific approach to management make organizations efficient operating machines. Scientific Management Bureaucratic Organizations Administrative Principles

Classical Perspective on Management Focuses on the

individual workers productivity Focuses on the overall organizational system

Focuses on the functions of management

Scientific Management
Frederick W.Taylor The Gilbreths Henry Gantt

Frederick W.Taylor

Scientific Management
Frederick W. Taylor (1856-1915)
Father of Scientific Management.
attempted to define the one best way to perform every task through systematic study and other scientific methods. believed that improved management practices lead to improved productivity.

Three areas of focus:

Task Performance Supervision

Motivation

Task Performance
Scientific management incorporates basic expectations of management, including:
Development of work standards Selection of workers

Training of workers
Support of workers

Supervision
Taylor felt that a single supervisor could not be an expert at all tasks.
As a result, each first-level supervisor should be responsible only workers who perform a common function familiar to the supervisor. This became known as Functional Foremanship.

Motivation
Taylor believed money was the way to motivate workers to their fullest capabilities.
He advocated a piecework system in which workers pay was tied to their output.
Workers who met a standard level of production were paid a standard wage rate. Workers whose production exceeded the standard were paid at a higher rate for all of their production output.

 The Gilbreths Frank Gilbreth

Specialized in time and motion studies to determine the most efficient way to perform tasks. Used motion pictures of bricklayers to identified work elements (therbligs) such as lifting and grasping.

 Lillian Gilbreth
A strong proponent of better working conditions as a means of improving efficiency and productivity.
Favored standard days with scheduled lunch breaks and rest periods for workers. Strived for removal of unsafe working conditions and the abolition of child labor.

Administrative Management
The study of how to create an organizational structure that leads to high efficiency and effectiveness.

 Henri Fayol (18411925)

First recognized that successful managers had to understand the basic managerial functions.
Developed a set of 14 general principles of management. Fayols managerial functions of planning, leading, organizing and controlling are routinely used in modern organizations.

 Fayols General Principles of Management

1. Division of work 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to the common good 7. Remuneration of personnel 8. 9. 10. 11. 12. 13. 14. Centralization Scalar chain Order Equity Stability Initiative Esprit de corps

 Division of Labor/Work: Allows for job specialization. jobs can have too much specialization leading to poor quality and worker dissatisfaction. Authority and Responsibility both formal and informal authority resulting from special expertise. Unity of Command Employees should have only one boss. If not, chaos and confusion.

 Line of Authority A clear chain of command from top to bottom of the firm. Centralization The degree to which authority rests at the top of the organization. Unity of Direction A single plan of action to guide the organization.

 Equity The provision of justice and the fair and impartial treatment of all employees. Order The arrangement of employees in order to optimize value for the organization and provide career opportunities. Initiative The fostering of creativity and innovation by encouraging employees to act on their own.

 Discipline Obedient, applied, respectful employees are necessary for the organization to function.
Equitable Remuneration of Personnel An equitable and uniform payment system that motivates employees to contribute to organizational success.

 Stability of Personnel Tenure Long-term employment is important for the development of skills that improve the organizations performance (it also makes employees feel secure, but beware complacency). Subordination of Individual Interest to the Common Interest The interest of the organization takes precedence over that of the individual employee.

 Esprit de corps Comradeship and shared enthusiasm foster devotion to the common cause (the success of the organization).

Bureaucratic Management
Focuses on the overall organizational system. Bureaucratic management is based upon:
Firm rules Policies and procedures A fixed hierarchy A clear division of labor

 Max Weber (18641920)

A German sociologist and historian who envisioned a system of management that would be based upon impersonal and rational behaviorthe approach to management now referred to as bureaucracy.
Division of labor Hierarchy of authority Rules and procedures Impersonality Employee selection and promotion

Webers Forms of Authority

Traditional authority
Subordinate obedience based upon custom or tradition (e.g., kings, queens, chiefs).

Charismatic authority
Subordinates voluntarily comply with a leader because of his or her special personal qualities or abilities (e.g., Martin Luther King, Gandhi).

 Rational-legal authority
Subordinate obedience based upon the position held by superiors within the organization (e.g., police officers, executives, supervisors).

Bureaucratic Hierarchical Power Structure

Behavioral Perspective:
The study of how managers should behave in order to motivate employees to achieve organizational goals.

 Followed the classical perspective in the development of management thought.

Acknowledged the importance of human behavior in shaping management style Is associated with:
Mary Parker Follett Elton Mayo Douglas McGregor Chester Barnard

 Mary Parker Follett: (1868-1933) Concluded that a key to effective management was coordination. Felt that managers needed to coordinate and harmonize group effort rather than force and coerce people. Believed that management is a continuous, dynamic process. Felt that the best decisions would be made by people who were closest to the situation.

Follett on Effective Work Groups Four principles of coordination to promote effective work groups:
1. Coordination requires that people be in direct contact with one another.
2. Coordination is essential during the initial stages of any endeavor. 3. Coordination must address all factors and phases of any endeavor. 4. Coordination is a continuous, ongoing process.

 Elton Mayo: Conducted the famous Hawthorne Experiments.

Hawthorne Effect
Productivity increased because attention was paid to the workers in the experiment. Phenomenon whereby individual or group performance is influenced by human behavior factors.

His work represents the transition from scientific management to the early human relations movement.

The Hawthorne Studies Studies of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the Western Electric Company from 19241932.
Worker productivity was measured at various levels of light illumination.

 Douglas McGregor: (1906-1964) Proposed the Theory X and Theory Y styles of management.
Theory X managers perceive that their subordinates have an inherent dislike of work and will avoid it if at all possible. Theory Y managers perceive that their subordinates enjoy work and that they will gain satisfaction from performing their jobs.

Comparison of Theory X and Theory Y Assumptions

Factor
Employee attitude toward work Management view of direction

Theory X Assumptions
Employees dislike work and. will avoid it if at all possible. Employees must be directed, coerced, controlled, or threatened to get them to put forth adequate effort. Employees wish to avoid responsibility; they prefer to be directed and told what to do and how to do it. Authoritarian style of management

Theory Y Assumptions
Employees enjoy work and will actively seek it. Employees are self-motivated and self-directed toward achieving organizational goals. Employees seek responsibility; they wish to use their creativity, imagination, and ingenuity in performing their jobs. Participatory style of management

Employee view of direction

Management style

Management Science Theory

A management approach using rigorous quantitative techniques to maximize productive use of organizational resources.

1.Quantitative management Characterized by its use of mathematics, statistics, and other quantitative techniques for management decision making and problem solving. This approach has four basic characteristics:
1. A decision-making focus 2. Development of measurable criteria 3. Formulation of a quantitative model 4. The use of computers

2.Operations management (Systems Perspective)

An approach to problem solving based on an understanding of the basic structure of systems.
Environmental interaction
Open systems must interact with the external environment to survive. Closed systems do not interact with the environment.

Basic Structure of Systems

3.Total Quality Management (TQM) Focuses on analyzing input, conversion, and output activities to increase product quality. (Deming, Juran).

4.Management Information Systems (MIS) Provide information vital for effective decision making and control.

The Contingency Perspective

A view that proposes that there is no one best approach to management for all situations.
Asserts that managers are responsible for determining which managerial approach is likely to be most effective in a given situation. This requires managers to identify the key contingencies in a given situation.

Blending Components into a Contingency Perspective

Management in the 21st Century

William Ouchis Theory Z
Japanese-style approach to management developed by William Ouchi
Advocates trusting employees and making them feel like an integral part of the organization. Based on the assumption that once a trusting relationship with workers is established, production will increase.

Question

How has management theory and practice evolved over the decades? From what to what?

Management Evolution From process to people From totalitarian to team From command to consensus From tall and rigid to flexible and flat From eyes-in to eyes-out.

ANY QUESTIONS???????