2/23/2009                                                                                                                 ...
2/23/2009 Exhibit 2–1 Development of Major Management Theories         2–                                                 ...
2/23/2009 Exhibit 2–3 Fayol’s 14 Principles of Management         2– Fayol’                                               ...
2/23/2009 The Systems Approach                                                                  Exhibit 2–6 The Organizati...
2/23/2009 Current Trends and Issues (cont’d)                           (cont’                                             ...
2/23/2009 Current Trends and Issues (cont’d)                           (cont’                                        Exhib...
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Chapter 2

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Chapter 2

  1. 1. 2/23/2009 LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter. • Historical Background of Management • Explain why studying management history is important. ninth edition • Describe some early evidences of management practice. STEPHEN P. ROBBINS MARY COULTER • Scientific Management g Chapter • Describe the important contributions made by Fredrick Management W. Taylor and Frank and Lillian Gilbreth. 2 Yesterday and Today • Explain how today’s managers use scientific management. today’© 2007 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook © 2007 Prentice Hall, Inc. All rights reserved. 2–2All rights reserved. The University of West Alabama L E A R N I N G O U T L I N E (cont’d) (cont’ L E A R N I N G O U T L I N E (cont’d) (cont’ Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. • General Administrative Theory • Toward Understanding Organizational Behavior • Discuss Fayol’s contributions to management theory. Fayol’ • Describe the contributions of the early advocates of OB. • Describe Max Weber’s contribution to management Weber’ • Explain the contributions of the Hawthorne Studies to the theory. field of management. • Explain how today’s managers use general administrative today’ • Discuss how today’s managers use the behavioral today’ theory. approach. • Quantitative Approach • The Systems Approach • Explain what the quantitative approach has contributed to • Describe an organization using the systems approach. the field of management. • Discuss how the systems approach helps us • Discuss how today’s managers use the quantitative today’ management. approach. © 2007 Prentice Hall, Inc. All rights reserved. 2–3 © 2007 Prentice Hall, Inc. All rights reserved. 2–4 L E A R N I N G O U T L I N E (cont’d) (cont’ Historical Background of Management Follow this Learning Outline as you read and study this chapter. • Ancient Management • The Contingency Approach Egypt (pyramids) and China (Great Wall) • Explain how the contingency approach differs from the Venetians (floating warship assembly lines) early theories of management. • Adam Smith • Discuss how the contingency approach helps us Published “The Wealth of Nations” in 1776 Nations” understand management. management Advocated the division of labor (job specialization) to increase • Current Issues and Trends the productivity of workers • Explain why we need to look at the current trends and • Industrial Revolution issues facing managers. Substituted machine power for human labor • Describe the current trends and issues facing managers. Created large organizations in need of management © 2007 Prentice Hall, Inc. All rights reserved. 2–5 © 2007 Prentice Hall, Inc. All rights reserved. 2–6 1
  2. 2. 2/23/2009 Exhibit 2–1 Development of Major Management Theories 2– Major Approaches to Management • Scientific Management • General Administrative Theory • Quantitative Management • Organizational Behavior • Systems Approach • Contingency Approach© 2007 Prentice Hall, Inc. All rights reserved. 2–7 © 2007 Prentice Hall, Inc. All rights reserved. 2–8 Scientific Management Exhibit 2–2 Taylor’s Four Principles of Management 2– Taylor’ • Fredrick Winslow Taylor 1. Develop a science for each element of an individual’s work, The “father” of scientific management father” which will replace the old rule-of-thumb method. Published Principles of Scientific Management (1911) 2. Scientifically select and then train, teach, and develop the worker. The theory of scientific management 3. Heartily cooperate with the workers so as to ensure that all – Using scientific methods to define the “one best way” for a way” work is done in accordance with the principles of the science job to be done: that has been developed. • Putting the right person on the job with the correct tools and equipment. 4. Divide work and responsibility almost equally between management and workers. Management takes over all work • Having a standardized method of doing the job. for which it is better fitted than the workers. • Providing an economic incentive to the worker.© 2007 Prentice Hall, Inc. All rights reserved. 2–9 © 2007 Prentice Hall, Inc. All rights reserved. 2–10 Scientific Management (cont’d) (cont’ General Administrative Theory • Frank and Lillian Gilbreth • Henri Fayol Focused on increasing worker productivity through Believed that the practice of management was distinct the reduction of wasted motion from other organizational functions Developed the microchronometer to time worker Developed fourteen principles of management that motions and optimize work performance applied to all organizational situations • How D T d ’s M H Do Today Managers U S i tifi Today’ Use Scientific •M W b Max Weber Management? Developed a theory of authority based on an ideal Use time and motion studies to increase productivity type of organization (bureaucracy) Hire the best qualified employees Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism Design incentive systems based on output© 2007 Prentice Hall, Inc. All rights reserved. 2–11 © 2007 Prentice Hall, Inc. All rights reserved. 2–12 2
  3. 3. 2/23/2009 Exhibit 2–3 Fayol’s 14 Principles of Management 2– Fayol’ Exhibit 2–4 Weber’s Ideal Bureaucracy Weber’ 1. Division of work. 7. Remuneration. 2. Authority. 8. Centralization. 3. Discipline. 9. Scalar chain. 4. Unity of command. 10. Order. 5. Unity of direction. 11. Equity. 6. Subordination of 12. Stability of tenure individual interests of personnel. to the general 13. Initiative. interest. 14. Esprit de corps.© 2007 Prentice Hall, Inc. All rights reserved. 2–13 © 2007 Prentice Hall, Inc. All rights reserved. 2–14 Quantitative Approach to Management Understanding Organizational Behavior • Quantitative Approach • Organizational Behavior (OB) Also called operations research or management The study of the actions of people at work; people are science the most important asset of an organization Evolved from mathematical and statistical methods • Early OB Advocates developed to solve WWII military logistics and quality control problems Robert Owen Focuses on improving managerial decision making by Hugo Munsterberg applying: Mary Parker Follett Statistics, optimization models, information models, and Chester Barnard computer simulations© 2007 Prentice Hall, Inc. All rights reserved. 2–15 © 2007 Prentice Hall, Inc. All rights reserved. 2–16 Exhibit 2–5 Early Advocates of OB 2– The Hawthorne Studies •A series of productivity experiments conducted at Western Electric from 1927 to 1932. •Experimental findings Productivity unexpectedly increased under imposed adverse working conditions. d ki diti The effect of incentive plans was less than expected. •Research conclusion Social norms, group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives.© 2007 Prentice Hall, Inc. All rights reserved. 2–17 © 2007 Prentice Hall, Inc. All rights reserved. 2–18 3
  4. 4. 2/23/2009 The Systems Approach Exhibit 2–6 The Organization as an Open System 2– • System Defined A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. • Basic Types of Systems Closed systems Are not influenced by and do not interact with their environment (all system input and output is internal). Open systems Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.© 2007 Prentice Hall, Inc. All rights reserved. 2–19 © 2007 Prentice Hall, Inc. All rights reserved. 2–20 Implications of the Systems Approach The Contingency Approach • Coordination of the organization’s parts is organization’ • Contingency Approach Defined essential for proper functioning of the entire Also sometimes called the situational approach. organization. There is no one universally applicable set of • Decisions and actions taken in one area of the management principles (rules) by which to manage organization will have an effect in other areas of g organizations. the organization. Organizations are individually different, face different situations (contingency variables), and require • Organizations are not self-contained and, self- different ways of managing. therefore, must adapt to changes in their external environment.© 2007 Prentice Hall, Inc. All rights reserved. 2–21 © 2007 Prentice Hall, Inc. All rights reserved. 2–22 Exhibit 2–7 Popular Contingency Variables 2– Current Trends and Issues • Organization size • Globalization • As size increases, so do the problems of coordination. • Ethics • Routineness of task technology • Workforce Diversity • Routine technologies require organizational structures, leadership styles, and control systems that differ from • Entrepreneurship those required by customized or nonroutine technologies. • E-business • Environmental uncertainty • Knowledge Management • What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and • Learning Organizations unpredictable environment. • Quality Management • Individual differences • Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations.© 2007 Prentice Hall, Inc. All rights reserved. 2–23 © 2007 Prentice Hall, Inc. All rights reserved. 2–24 4
  5. 5. 2/23/2009 Current Trends and Issues (cont’d) (cont’ Exhibit 2–8 A Process for Addressing Ethical Dilemmas 2– • Globalization Management in international organizations Step 1: What is the ethical dilemma? Political and cultural challenges of operating in a Step 2: Who are the affected stakeholders? global market Working with people from different cultures Step 3: What personal, organizational, and Coping with anticapitalist backlash external factors are important to Movement of jobs to countries with low-cost labor low- my decision? • Ethics Increased emphasis on ethics education in college Step 4: What are possible alternatives? curriculums Increased creation and use of codes of ethics by Step 5: Make a decision and act on it. businesses© 2007 Prentice Hall, Inc. All rights reserved. 2–25 © 2007 Prentice Hall, Inc. All rights reserved. 2–26 Current Trends and Issues (cont’d) (cont’ Current Trends and Issues (cont’d) (cont’ • Workforce Diversity • Entrepreneurship Defined Increasing heterogeneity in the workforce The process of starting new businesses, generally in More gender, minority, ethnic, and other forms of diversity in response to opportunities. employees Aging workforce • Entrepreneurship process O de employees Older e p oyees who work longer a d do not retire o o o ge and ot et e Pursuit of opportunities pp The increased costs of public and private benefits for older Innovation in products, services, or business methods workers An increasing demand for products and services related to Desire for continual growth of the organization aging.© 2007 Prentice Hall, Inc. All rights reserved. 2–27 © 2007 Prentice Hall, Inc. All rights reserved. 2–28 Current Trends and Issues (cont’d) (cont’ Exhibit 2–9 Categories of E-Business Involvement 2– E- • E-Business (Electronic Business) The work preformed by an organization using electronic linkages to its key constituencies E-commerce: the sales and marketing aspect of an e- e- business • Categories of E-Businesses E- E-business enhanced organization E-business enabled organization Total e-business organization e-© 2007 Prentice Hall, Inc. All rights reserved. 2–29 © 2007 Prentice Hall, Inc. All rights reserved. 2–30 5
  6. 6. 2/23/2009 Current Trends and Issues (cont’d) (cont’ Exhibit 2–10 Learning Organization versus Traditional Organization • Learning Organization An organization that has developed the capacity to continuously learn, adapt, and change. • Knowledge Management The cultivation of a learning culture where g organizational members systematically gather and share knowledge with others in order to achieve better performance.© 2007 Prentice Hall, Inc. All rights reserved. 2–31 © 2007 Prentice Hall, Inc. All rights reserved. 2–32 Current Trends and Issues (cont’d) (cont’ Exhibit 2–11 What is Quality Management? 2– • Quality Management Intense focus on the customer. A philosophy of management driven by continual improvement in the quality of work processes and Concern for continual improvement responding to customer needs and expectations Process-focused. Inspired by the total quality management (TQM) ideas of Deming and Juran Improvement in the quality of everything. everything Quality is not directly related to cost Accurate measurement. Poor quality results in lower productivity Empowerment of employees.© 2007 Prentice Hall, Inc. All rights reserved. 2–33 © 2007 Prentice Hall, Inc. All rights reserved. 2–34 6

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