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Evolution of management


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Evolution of management

  1. 1. Evolution of Management<br />
  2. 2. 2000<br />The Technology-Driven Workplace<br />2010<br />1990<br />The Learning Organization<br />2000<br />1990<br />The Learning Organization<br />2010<br />1980<br />Total Quality Management<br />1970<br />Contingency Views<br />1950<br />Systems<br />2000<br />1940<br />Management Science<br />1930<br />Humanistic<br />1990<br />1890<br />Classical<br />1940<br />Management Perspectives Over Time<br />
  3. 3. 3<br />Classical Perspective<br />0<br />The early study of management. <br />19th – late 20th Century<br />Scientific Management<br />Bureaucratic Organizations<br />Administrative Principles<br />Very powerful, gave companies fundamental skill for high productivity<br />
  4. 4. Scientific Management<br />Frederick Winslow Taylor (1856-1915), father of scientific management<br />Focus on improving efficiency and labor productivity<br />Workers could be retooled like machines<br />Managers would need to change<br />Incentive systems for meeting standards<br />Others added to the theories<br />
  5. 5. Characteristics of Scientific Management<br />General Approach<br />Developed standard method for performing each job.<br />Selected workers with appropriate abilities for each job.<br />Trained workers in standard method.<br />Supported workers by planning work and eliminating interruptions.<br />Provided wage incentives to workers for increased output.<br />Contributions<br />Demonstrated the importance of compensation for performance.<br />Initiated the careful study of tasks and jobs.<br />Demonstrated the importance of personnel and their training.<br />Criticisms<br />Did not appreciate social context of work and higher needs of workers.<br />Did not acknowledge variance among individuals.<br />Tended to regard workers as uninformed and ignored their ideas.<br />
  6. 6. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />6<br />Administrative Principles<br />0<br />Henri Foyal (1841-1925), French mining engineer, turned industrialist, and other contributors led the ideas<br />Fayol wrote down his own management practices<br />In the text, General and Industrial Management; 14 general principles were outlined<br />Fayol divided industrial activities into six groups- Technical, Commercial, Financial, Security, Accounting and Managerial <br />To perform six activities, Fayol identified five managerial functions : Planning, Organizing, Commanding, Coordinating, and Controlling<br />Fayol was first to emphasize need for management teaching and outlined 14 principles of management<br />
  7. 7. Administrative Principles &Henri Fayol’s 14 Points<br />Division of work<br />Authority<br />Discipline<br />Unity of command<br />Unity of direction<br />Subordination of individual interest for common good<br />Remuneration<br />Centralization<br />Scalar chain<br />Order<br />Equity<br />Stability and tenure of staff<br />Initiative<br />Esprit de corps<br />
  8. 8. 8<br />Bureaucratic Organizations<br />0<br />Max Weber (1864-1920), a German theorist and father of modern sociology, introduced the bureaucratic theories<br />He was concerned with managerial abuse of power and resources<br />He identified three types of authority or power- traditional, Charismatic and Rational or legal. <br />Weber opined Rational or legal authority is more efficient and adaptable to change<br />Selection and advancement would be focused on competence and technical qualifications<br />
  9. 9. 6 Characteristics of Weberian Bureaucracy<br />Labor is divided with clear definitions of authority and responsibility.<br />Positions are in hierarchy of authority.<br />Personnel are selected and promoted based on qualifications.<br />Acts and decisions are recorded in writing<br />Management is separate from the ownership.<br />Rules and procedures ensure reliable, & predictable behavior. Rules are impersonal and uniformly applied.<br />
  10. 10. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />10<br />6 Characteristics of Weberian Bureaucracy<br />0<br />
  11. 11. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />11<br />Humanistic Perspective<br />Led by Mary Parker Follett and Chester Barnard<br />It was Mary Parker Follett who defined management as getting things done through people<br />Importance of understanding human behaviors: needs, attitudes and social interactions<br />Human Relations Movement<br />Human Resources Perspective<br />Behavioral Sciences<br />0<br />
  12. 12. Humanistic Perspective<br />Emphasized understanding human behavior.<br />Dealt with needs & attitudes in the workplace.<br />Truly effective control comes from within the individual worker rather than authoritarian control.<br />Hawthorne Studies brought this perspective to forefront. <br />
  13. 13. Humanistic PerspectiveThree Sub-Fields<br /><ul><li>Human Relations Movement.
  14. 14. Human Resources Perspective.
  15. 15. Behavioral Sciences Approach.</li></li></ul><li>Hawthorne Studies<br />Human Relations Movement<br />Ten year study.<br />Four experimental & three control groups.<br />Five different tests.<br />Test pointed to factors other than illumination for productivity.<br />1st Relay Assembly Test Room experiment, was controversial, test lasted 6 years.<br />Interpretation, money not cause of increased output.<br />Factor that increased output, Human Relations.<br />
  16. 16. Hawthorne Studies<br />Study was initiated to at Hawthorne plant of Western Electric- an unit of AT&T to study effects of changes in lighting on productivity<br />Part of unit was divided into experimental group and control group<br />No change in lighting was effected in control group but light was enhanced in experimental group from 24 to 46 to 70’ candles- productivity went up in both groups<br />Then lighting of experimental group was reduced gradually to below normal but without any change in control group - productivity continued to increase in both groups<br />
  17. 17. Hawthorne Studies<br />Productivity of experimental group finally started to decline when lighting was reduced to moon light level and visibility got affected.<br />It proved that something other than lighting caused changes in productivity<br />Another experiment was conducted in Relay Assembly Test Room for 6 years. In this test relationship amongst rest, fatigue and productivity were also examined.<br />
  18. 18. Hawthorne Studies<br />First the normal productivity was measured<br />Then production based pay system was introduced without any change in working conditions for 8 weeks<br />Then two rest pauses of 5 minutes each were introduced at 10 am and 2 pm<br /> In next stage girls were given light lunch during pauses<br />In next stage workday was reduced by half hour<br />In next stage workday was reduced by one hour<br />In next stage 5 day week initiated<br />Gradual rise in output continued till here<br />
  19. 19. Hawthorne Studies<br />Then original work pattern without any pause, lunch and full work hrs introduced and productivity measured for 12 weeks.<br />Productivity declined but not to original levels meaning physical conditions did not have impact<br />Change in output could be related to attitudes and social factors at work place<br />Workers enjoyed getting attention. This is known as Hawthorne effect.<br />
  20. 20. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />19<br />Human Relations Movement<br />0<br />Control comes from the individual worker rather than authoritarian control<br />The Hawthorne studies found increased output due to managers’ better treatment of employees<br />Money mattered a great deal<br />Productivity increased from feelings of importance<br />Created a focus on positive treatment of employees<br />
  21. 21. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />20<br />Human Resources Perspective<br />0<br />Emphasizes understanding human behavior, needs and attitudes in the workplace.<br />Perspective came from the idea that cows gave more milk when they were more satisfied<br />Maintains an interest in worker participation. <br />Focus on job tasks and theories of motivation<br />Reduce dehumanizing or demeaning work<br />Allow workers to use full potential <br />Main contributors: Abraham Maslow and Douglas McGregor<br />Maslow’s Hierarchy of Needs<br />McGregor’s Theory X/Theory Y<br />
  22. 22. Maslow’s Hierarchy of Needs<br />
  23. 23. Abraham Maslow sought to explain why a need become driving at some time and some other needs at some other time<br />Maslow’s answer is that human needs are arranged in a hierarchy, from the most pressing to the least pressing<br />Physiological needs - food, shelter most potent<br />Psychological needs like safety, social, esteem and self actualisation are potent in that order<br />It says that person shall fulfill its most important need first at least to a minimum level and only then the next level need shall activate<br />
  24. 24. Organizational<br />Examples<br />General<br />Examples<br />Abraham Maslow’s Hierarchy<br />Self-<br />actualization<br />Challenging Job<br />Self-fulfillment<br />Esteem<br />Job Title<br />Status<br />Belonging<br />Friends<br />Friendship<br />Safety<br />Retirement Plan<br />Stability<br />Physiological<br />Shelter<br />Wages<br />Based on needs satisfaction<br />
  25. 25. Douglas McGregor’s Theory X & Theory Y<br />Theory X <br />People are lazy<br />People lack ambition <br />Dislike responsibility<br />People are self-centered<br />People don’t like change<br />People need close supervision<br />Theory Y <br />People are energetic<br />People want to make contributions<br />People do have ambition<br />People will seek responsibility<br />Consider work as natural as rest & play<br />
  26. 26. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />25<br />Theory X and Theory Y<br />0<br />
  27. 27. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />26<br />Behavioral Sciences Approach<br />0<br />Scientific methods that draw from sociology, psychology, anthropology, economics and other disciplines<br />Focus on human behavior and interaction<br />Organizational development came from behavioral sciences approach<br />Applied behavioral sciences to improve organizational health and effectiveness<br />
  28. 28. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />27<br />Management Science Perspective<br />0<br />Developed to meet changing and dynamic environment created from WWII<br />Engaged mathematics, statistics and quantitative techniques to aid in decision making<br />Increased study of management led by Peter Drucker<br />Use of technology and programming for optimizing operations<br />Introduced new subsets of management:<br />Operations Research<br />Operations Management<br />Information Technology<br />
  29. 29. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />28<br />Recent Historical Trends<br />0<br />Systems Theory. A holistic view of management as a interrelated parts to achieve a common purpose.<br />Contingency View. Successful resolution of organizational problems depends on situations.<br />Total Quality Management. Management of the total organization to deliver quality.<br />
  30. 30. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />29<br />The Systems View of Organizations<br />0<br />
  31. 31. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />30<br />Contingency View of Management<br />0<br />
  32. 32. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />31<br />Total Quality Management<br />0<br />W. Edward Deming, known as the father of the quality movement<br />US initially scoffed at Deming<br />During the 1908s and 1990s, quality became a focus to meet global competition<br />Four key elements of quality management:<br />Employee involvement<br />Focus on customer<br />Benchmarking<br />Continuous improvement<br />
  33. 33. Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.<br />32<br />The Learning Organization<br />0<br />Learning aids in the adaptation to change<br />Peter Senge began the discussion about the learning organization<br />All employees are engaged in identifying and solving problems<br />Learning increases the capacity to learn and grow<br />Move from efficiency to solving problems<br />
  34. 34. 33<br />Managing the Technology-Driven Workplace<br />0<br />Most work is performed on computers in today’s workplace<br />Companies use technology to communicate and collaborate<br />Key technologies in today’s workplace:<br />Supply Chain Management<br />Customer Relationship Management<br />Outsourcing<br />
  35. 35. 34<br />Supply Chain for a Retail Organization<br />0<br />
  36. 36. Management Science Perspective<br />Emerged after WW II.<br />Distinguished for its application of mathematics, statistics to problem solving.<br /><ul><li>Operations Research emerged.
  37. 37. Operations Management emerged.
  38. 38. Management Information Systems emerged.</li>