Evolution of Management
2000The Technology-Driven Workplace20101990The Learning Organization20001990The Learning Organization20101980Total Quality Management1970Contingency Views1950Systems20001940Management Science1930Humanistic19901890Classical1940Management Perspectives Over Time
3Classical Perspective0The early study of management.  19th – late 20th CenturyScientific ManagementBureaucratic OrganizationsAdministrative PrinciplesVery powerful, gave companies fundamental skill for high productivity
Scientific ManagementFrederick Winslow Taylor (1856-1915), father of scientific managementFocus on improving efficiency and labor productivityWorkers could be retooled like machinesManagers would need to changeIncentive systems for meeting standardsOthers added to the theories
Characteristics of Scientific ManagementGeneral ApproachDeveloped 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.ContributionsDemonstrated the importance of compensation for performance.Initiated the careful study of tasks and jobs.Demonstrated the importance of personnel and their training.CriticismsDid 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.
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.6Administrative Principles0Henri Foyal (1841-1925), French mining engineer, turned industrialist, and other contributors led the ideasFayol wrote down his own management practicesIn the text, General and Industrial Management; 14 general principles were outlinedFayol divided industrial activities into six groups- Technical, Commercial, Financial, Security, Accounting and Managerial To perform six activities, Fayol identified five managerial functions :  Planning, Organizing, Commanding, Coordinating, and ControllingFayol was first to emphasize need for management teaching and outlined 14 principles of management
Administrative Principles &Henri Fayol’s 14 PointsDivision of workAuthorityDisciplineUnity of commandUnity of directionSubordination of individual interest for common goodRemunerationCentralizationScalar chainOrderEquityStability and tenure of staffInitiativeEsprit de corps
8Bureaucratic Organizations0Max Weber (1864-1920), a German theorist  and father of modern sociology, introduced the bureaucratic theoriesHe was concerned with managerial abuse of power and resourcesHe identified three types of authority or power- traditional, Charismatic and Rational or legal. Weber opined Rational or legal authority is more efficient and adaptable to changeSelection and advancement would be focused on competence and technical qualifications
6 Characteristics of Weberian BureaucracyLabor 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 writingManagement is separate from the ownership.Rules and procedures ensure reliable, & predictable behavior. Rules are impersonal and uniformly applied.
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.106 Characteristics of Weberian Bureaucracy0
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.11Humanistic PerspectiveLed by Mary Parker Follett and Chester BarnardIt was Mary Parker Follett  who defined management as getting things done through peopleImportance of understanding human behaviors:  needs, attitudes and social interactionsHuman Relations MovementHuman Resources PerspectiveBehavioral Sciences0
Humanistic PerspectiveEmphasized 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.
Humanistic PerspectiveThree Sub-FieldsHuman Relations Movement.
Human Resources Perspective.
Behavioral Sciences Approach.Hawthorne StudiesHuman Relations MovementTen 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.Interpretation, money not cause of increased output.Factor that increased output, Human Relations.
Hawthorne StudiesStudy was initiated to at Hawthorne plant of Western Electric- an unit of AT&T to study effects of changes in lighting on productivityPart of unit was divided into experimental group and control groupNo 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 groupsThen lighting of experimental group was reduced gradually to below normal but without any change in control group - productivity continued to increase in both groups
Hawthorne StudiesProductivity of experimental group finally started to decline when lighting was reduced to moon light level and visibility got affected.It proved that something other than lighting caused changes in productivityAnother experiment was conducted in Relay Assembly Test Room for 6 years. In this test relationship amongst rest, fatigue and productivity were also examined.
Hawthorne StudiesFirst the normal productivity was measuredThen production based pay system was introduced without any change in working conditions for 8 weeksThen two rest pauses of 5 minutes each were introduced at 10 am and 2 pm In next stage girls were given light lunch during pausesIn next stage workday was reduced by half hourIn next stage workday was reduced by one hourIn next stage 5 day week initiatedGradual rise in output continued till here
Hawthorne StudiesThen original work pattern without any pause, lunch and full work hrs introduced and productivity measured for 12 weeks.Productivity declined but not to original levels meaning physical conditions did not have impactChange in output could be related to attitudes and social factors at work placeWorkers enjoyed getting attention. This is known as Hawthorne effect.
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.19Human Relations Movement0Control comes from the individual worker rather than authoritarian controlThe Hawthorne studies found increased output due to managers’ better treatment of employeesMoney mattered a great dealProductivity increased from feelings of importanceCreated a focus on positive treatment of employees
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.20Human Resources Perspective0Emphasizes understanding human behavior, needs and attitudes in the workplace.Perspective came from the idea that cows gave more milk when they were more satisfiedMaintains an interest in worker participation. Focus on job tasks and theories of motivationReduce dehumanizing or demeaning workAllow workers to use full potential Main contributors: Abraham Maslow and Douglas McGregorMaslow’s Hierarchy of NeedsMcGregor’s Theory X/Theory Y
Maslow’s Hierarchy of Needs
Abraham Maslow sought to explain why a need become driving at some time and some other needs at some other timeMaslow’s answer is that human needs are arranged in a hierarchy, from the most pressing to the least pressingPhysiological needs - food, shelter most potentPsychological needs like safety, social, esteem and self actualisation are potent in that orderIt 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
OrganizationalExamplesGeneralExamplesAbraham Maslow’s HierarchySelf-actualizationChallenging JobSelf-fulfillmentEsteemJob TitleStatusBelongingFriendsFriendshipSafetyRetirement PlanStabilityPhysiologicalShelterWagesBased on needs satisfaction
Douglas McGregor’s Theory X & Theory YTheory X People are lazyPeople lack ambition Dislike responsibilityPeople are self-centeredPeople don’t like changePeople need close supervisionTheory Y People are energeticPeople want to make contributionsPeople do have ambitionPeople will seek responsibilityConsider work as natural as rest & play
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.25Theory X and Theory Y0
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.26Behavioral Sciences Approach0Scientific methods that draw from sociology, psychology, anthropology, economics and other disciplinesFocus on human behavior and interactionOrganizational development came from behavioral sciences approachApplied behavioral sciences to improve organizational health and effectiveness
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.27Management Science Perspective0Developed to meet changing and dynamic environment created from WWIIEngaged mathematics, statistics and quantitative techniques to aid in decision makingIncreased study of management led by Peter DruckerUse of technology and programming for optimizing operationsIntroduced new subsets of management:Operations ResearchOperations ManagementInformation Technology
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.28Recent Historical Trends0Systems Theory. A holistic view of management as a interrelated parts to achieve a common purpose.Contingency View. Successful resolution of organizational problems depends on situations.Total Quality Management. Management of the total organization to deliver quality.
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.29The Systems View of Organizations0
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.30Contingency View of Management0
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.31Total Quality Management0W. Edward Deming, known as the father of the quality movementUS initially scoffed at DemingDuring the 1908s and 1990s, quality became a focus to meet global competitionFour key elements of quality management:Employee involvementFocus on customerBenchmarkingContinuous improvement
Copyright ©2010 by South-Western, a division of  Cengage Learning.  All rights reserved.32The Learning Organization0Learning aids in the adaptation to changePeter Senge began the discussion about the learning organizationAll employees are engaged in identifying and solving problemsLearning increases the capacity to learn and growMove from efficiency to solving problems
33Managing the Technology-Driven Workplace0Most work is performed on computers in today’s workplaceCompanies use technology to communicate and collaborateKey technologies in today’s workplace:Supply Chain ManagementCustomer Relationship ManagementOutsourcing
34Supply Chain for a Retail Organization0

Evolution of management

  • 1.
  • 2.
    2000The Technology-Driven Workplace20101990TheLearning Organization20001990The Learning Organization20101980Total Quality Management1970Contingency Views1950Systems20001940Management Science1930Humanistic19901890Classical1940Management Perspectives Over Time
  • 3.
    3Classical Perspective0The earlystudy of management. 19th – late 20th CenturyScientific ManagementBureaucratic OrganizationsAdministrative PrinciplesVery powerful, gave companies fundamental skill for high productivity
  • 4.
    Scientific ManagementFrederick WinslowTaylor (1856-1915), father of scientific managementFocus on improving efficiency and labor productivityWorkers could be retooled like machinesManagers would need to changeIncentive systems for meeting standardsOthers added to the theories
  • 5.
    Characteristics of ScientificManagementGeneral ApproachDeveloped 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.ContributionsDemonstrated the importance of compensation for performance.Initiated the careful study of tasks and jobs.Demonstrated the importance of personnel and their training.CriticismsDid 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.
  • 6.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.6Administrative Principles0Henri Foyal (1841-1925), French mining engineer, turned industrialist, and other contributors led the ideasFayol wrote down his own management practicesIn the text, General and Industrial Management; 14 general principles were outlinedFayol divided industrial activities into six groups- Technical, Commercial, Financial, Security, Accounting and Managerial To perform six activities, Fayol identified five managerial functions : Planning, Organizing, Commanding, Coordinating, and ControllingFayol was first to emphasize need for management teaching and outlined 14 principles of management
  • 7.
    Administrative Principles &HenriFayol’s 14 PointsDivision of workAuthorityDisciplineUnity of commandUnity of directionSubordination of individual interest for common goodRemunerationCentralizationScalar chainOrderEquityStability and tenure of staffInitiativeEsprit de corps
  • 8.
    8Bureaucratic Organizations0Max Weber(1864-1920), a German theorist and father of modern sociology, introduced the bureaucratic theoriesHe was concerned with managerial abuse of power and resourcesHe identified three types of authority or power- traditional, Charismatic and Rational or legal. Weber opined Rational or legal authority is more efficient and adaptable to changeSelection and advancement would be focused on competence and technical qualifications
  • 9.
    6 Characteristics ofWeberian BureaucracyLabor 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 writingManagement is separate from the ownership.Rules and procedures ensure reliable, & predictable behavior. Rules are impersonal and uniformly applied.
  • 10.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.106 Characteristics of Weberian Bureaucracy0
  • 11.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.11Humanistic PerspectiveLed by Mary Parker Follett and Chester BarnardIt was Mary Parker Follett who defined management as getting things done through peopleImportance of understanding human behaviors: needs, attitudes and social interactionsHuman Relations MovementHuman Resources PerspectiveBehavioral Sciences0
  • 12.
    Humanistic PerspectiveEmphasized understandinghuman 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.
  • 13.
  • 14.
  • 15.
    Behavioral Sciences Approach.HawthorneStudiesHuman Relations MovementTen 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.Interpretation, money not cause of increased output.Factor that increased output, Human Relations.
  • 16.
    Hawthorne StudiesStudy wasinitiated to at Hawthorne plant of Western Electric- an unit of AT&T to study effects of changes in lighting on productivityPart of unit was divided into experimental group and control groupNo 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 groupsThen lighting of experimental group was reduced gradually to below normal but without any change in control group - productivity continued to increase in both groups
  • 17.
    Hawthorne StudiesProductivity ofexperimental group finally started to decline when lighting was reduced to moon light level and visibility got affected.It proved that something other than lighting caused changes in productivityAnother experiment was conducted in Relay Assembly Test Room for 6 years. In this test relationship amongst rest, fatigue and productivity were also examined.
  • 18.
    Hawthorne StudiesFirst thenormal productivity was measuredThen production based pay system was introduced without any change in working conditions for 8 weeksThen two rest pauses of 5 minutes each were introduced at 10 am and 2 pm In next stage girls were given light lunch during pausesIn next stage workday was reduced by half hourIn next stage workday was reduced by one hourIn next stage 5 day week initiatedGradual rise in output continued till here
  • 19.
    Hawthorne StudiesThen originalwork pattern without any pause, lunch and full work hrs introduced and productivity measured for 12 weeks.Productivity declined but not to original levels meaning physical conditions did not have impactChange in output could be related to attitudes and social factors at work placeWorkers enjoyed getting attention. This is known as Hawthorne effect.
  • 20.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.19Human Relations Movement0Control comes from the individual worker rather than authoritarian controlThe Hawthorne studies found increased output due to managers’ better treatment of employeesMoney mattered a great dealProductivity increased from feelings of importanceCreated a focus on positive treatment of employees
  • 21.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.20Human Resources Perspective0Emphasizes understanding human behavior, needs and attitudes in the workplace.Perspective came from the idea that cows gave more milk when they were more satisfiedMaintains an interest in worker participation. Focus on job tasks and theories of motivationReduce dehumanizing or demeaning workAllow workers to use full potential Main contributors: Abraham Maslow and Douglas McGregorMaslow’s Hierarchy of NeedsMcGregor’s Theory X/Theory Y
  • 22.
  • 23.
    Abraham Maslow soughtto explain why a need become driving at some time and some other needs at some other timeMaslow’s answer is that human needs are arranged in a hierarchy, from the most pressing to the least pressingPhysiological needs - food, shelter most potentPsychological needs like safety, social, esteem and self actualisation are potent in that orderIt 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
  • 24.
    OrganizationalExamplesGeneralExamplesAbraham Maslow’s HierarchySelf-actualizationChallengingJobSelf-fulfillmentEsteemJob TitleStatusBelongingFriendsFriendshipSafetyRetirement PlanStabilityPhysiologicalShelterWagesBased on needs satisfaction
  • 25.
    Douglas McGregor’s TheoryX & Theory YTheory X People are lazyPeople lack ambition Dislike responsibilityPeople are self-centeredPeople don’t like changePeople need close supervisionTheory Y People are energeticPeople want to make contributionsPeople do have ambitionPeople will seek responsibilityConsider work as natural as rest & play
  • 26.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.25Theory X and Theory Y0
  • 27.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.26Behavioral Sciences Approach0Scientific methods that draw from sociology, psychology, anthropology, economics and other disciplinesFocus on human behavior and interactionOrganizational development came from behavioral sciences approachApplied behavioral sciences to improve organizational health and effectiveness
  • 28.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.27Management Science Perspective0Developed to meet changing and dynamic environment created from WWIIEngaged mathematics, statistics and quantitative techniques to aid in decision makingIncreased study of management led by Peter DruckerUse of technology and programming for optimizing operationsIntroduced new subsets of management:Operations ResearchOperations ManagementInformation Technology
  • 29.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.28Recent Historical Trends0Systems Theory. A holistic view of management as a interrelated parts to achieve a common purpose.Contingency View. Successful resolution of organizational problems depends on situations.Total Quality Management. Management of the total organization to deliver quality.
  • 30.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.29The Systems View of Organizations0
  • 31.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.30Contingency View of Management0
  • 32.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.31Total Quality Management0W. Edward Deming, known as the father of the quality movementUS initially scoffed at DemingDuring the 1908s and 1990s, quality became a focus to meet global competitionFour key elements of quality management:Employee involvementFocus on customerBenchmarkingContinuous improvement
  • 33.
    Copyright ©2010 bySouth-Western, a division of Cengage Learning.  All rights reserved.32The Learning Organization0Learning aids in the adaptation to changePeter Senge began the discussion about the learning organizationAll employees are engaged in identifying and solving problemsLearning increases the capacity to learn and growMove from efficiency to solving problems
  • 34.
    33Managing the Technology-DrivenWorkplace0Most work is performed on computers in today’s workplaceCompanies use technology to communicate and collaborateKey technologies in today’s workplace:Supply Chain ManagementCustomer Relationship ManagementOutsourcing
  • 35.
    34Supply Chain fora Retail Organization0
  • 36.
    Management Science PerspectiveEmergedafter WW II.Distinguished for its application of mathematics, statistics to problem solving.Operations Research emerged.
  • 37.
  • 38.