historical foundation of management
TRANSCRIPT
Historical Foundations of Management
Prepared By : ZAREEN SHAIKH, SZABIST LarkanaSession-2
Class-BBA.2
It gives executives a way of thinking, a way of searching for patterns and understanding trends. It provides a context or environment in which to interpret current problems.
Forces: Social, political, economic
Why is history Important?
Management and Organization Social Forces:
– The aspect of culture that guide and influence relationship among people – their values, needs and standard of behaviors ( Sindhi Values, American Culture, African Culture)
Political Forces:– The influence of political and legal institution on
organization and people ( Courts, Company Reg.Act 1973, Labor Law)
Economic Forces:– Allocation of Resources, Employment, Inflation etc
Historical Background Of Management
Organizations Have Existed for Thousands of Years– testifies to the existence of early management practice
• ability to create the Pyramids, Great Wall of China
Significant Pre-Twentieth-Century Events– Wealth of Nations - Adam Smith
• division of labor - breakdown of jobs into narrow and repetitive tasks increased productivity
– Industrial Revolution • substitution of machine power for human power• large organizations required formal management
Development Of Major Management Theories
HistoricalBackground Scientific
ManagementGeneralAdministrativeTheorists
QuantitativeApproach
Management Theories
IndustrialRevolution
Adam Smith
Early Advocates
Hawthorne Studies
OrganizationalBehavior
Early Examplesof Management
Management Approaches
Classical Humanistic Management Science Recent Trends
– Systems Theory– Contingency View– Total Quality Management
First Perspective:
CLASSICAL
Classical Perspective
Emerged during the 19th and 20th centuries Factory systems appearing in 1800’s Problems:
– Tooling the plants– Organizing managerial structure– Training employees (many immigrants)– Scheduling complex manufacturing operations– Increased labor dissatisfaction; strikes
Classical Approaches
Scientific Management– Frederick Winslow Taylor (1856-1915) – Henry Gantt– Frank B. and Lillian M. Gilbreth
Bureaucratic Organizations– Max Weber (1864-1920)
Administrative Principles– Henri Fayol (1841-1925)– Mary Parker Follett (1868 – 1933)– Chester I. Barnard (1886-1961)
Scientific Management
Classical Perspective
Frederick Taylor, Engineer Father of Scientific Management
Problem in labor productivity lies with poor
management practices, not labor.
Manner of change can be determined only by
scientific study.
Replace rules of thumb and tradition with precise
procedures developed after careful study.
Work with Bethlehem Steel plant in 1898
Henry Gantt
Gantt Chart – a bar graph that measures planned
and completed work along each stage of
production by time elapsed.
Frank B. Gilbreth(1868 – 1924) Pioneered time and motion study
Stressed efficiency; “one best way” to do work.
Early work with bricklayers
Greatest impact on medical surgery by drastically
reducing the time patients spent on the operating
table.
Lillian M. Gilbreth1878-1972 Widowed in 1924 with 12 children, ages 2 – 19.
“First Lady of Management”
Pioneered in the field of industrial psychology and
made substantial contributions to human resource
management.
Bureaucratic Organizations
Classical Perspective
Max Weber, German Theorist Envisioned organizations managed on an impersonal,
rational basis.
An organization based on rational authority would be more
efficient and adaptable to change.
Employee selection and advancement based on
competence.
Rely on rules and written records for continuity.
Manager relies on legal power of his/her position instead
of personality.
EXHIBIT 2.4: WEBER’S IDEAL BUREAUCRACY
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Administrative Principles
Classical Perspective
Henri Fayol, French Engineer
General and Industrial Management
Proposed 14 general principles of management– Unity of command (one supervisor)
– Division of work (specialization)
– Unity of direction (group similar activities)
– Scalar chain (chain of authority)
Mary Parker Follett
Trained in philosophy and political science
Stressed the importance of people rather than engineering
techniques
“Don’t Hug Your Blueprints”
Analyzed dynamics of management-organization
interactions
Addressed ethics, power and leadership
Proposed concept of empowerment
Chester I. Barnard
Studied Economics at Harvard; no degree
President of New Jersey Bell in 1927
Proposed the concept of the informal organization
Includes cliques and naturally occurring social groupings
Acceptance theory of authority – people have free will and
can choose whether to follow management orders.
Second Perspective:
Humanistic
Humanistic Perspective
Human Relations Movement– Hawthorne Studies (1927-1932), Western Electric
Hawthorne Works in Chicago– CIL, Thomas Edison, Honorary Chair, 1924-1927– Elton Mayo, Harvard Business School examined
productivity and work conditions Human Resources Perspective
– Abraham Maslow (1908-1970)– Douglas McGregor (1906-1964)
Behavioral Sciences Approach
The Hawthorne Effect
The rewards you reap when you pay attention to
people. The mere act of showing people that
you’re concerned about them usually spurs them
to better job performance.
When people spend a large portion of their time at
work, they must have a sense of belonging, of
being part of a team.
Hawthorne Studies
1895 – struggle develops between manufacturers of gas
and electric lighting fixtures for control of the residential
and industrial market.
More light results in more productivity, they say
6 year Study Result: Money was not the cause of the
increased output. Employees’ output increased sharply
when managers treated them in a positive manner.
The Human Relations Movement
Humanistic PerspectiveThe human relations school of thought
considers that truly effective control comes from within the individual workers rather
than from strict, authoritarian control.
The Human Resources Perspective
Humanistic Perspective
Abraham Maslow, Psychologist
Observed that patients’ problems stemmed from inability
to satisfy their needs.
Proposed a hierarchy of needs– Physiological needs
– Safety
– Belongingness
– Esteem
– Self-actualization
Basis for motivational techniques
Douglas McGregor, College President
Challenged assumptions about human behavior
based on his experiences as a manager, consultant,
his training as a psychologist, and Maslow’s work.
Theory X and Theory Y
Workers are best described by Theory Y
Take advantage of the imagination and intellect of
all employees.
Behavioral Sciences Approach
Humanistic Perspective
Behavioral Sciences Approach
It is based on scientific methods and study.
Draws from sociology, psychology, anthropology,
economics and other disciplines to understand
employee behavior and interaction in an
organizational setting.
Impacts motivation, communication, leadership
and human resource management.
Third Perspective:
Management Science
Management Science Perspective
World War II created sophisticated tools for modern global
warfare.
Applies mathematics, statistics and other quantitative
techniques to management decision-making and problem-
solving.
Operations Research
Operations Management
Management Information Systems
Fourth Perspective: Emerging Trends
Systems TheoryContingency View
Total Quality Management (Deming)
Systems Theory
A set of interrelated parts that function as a whole to achieve a common purpose.– Inputs– Transformation process– Outputs– Feedback– Environment
System Theory : Current Theories
System: A set of related parts that work together in order to achieve a common objective
Open System: A system that interact with external environment
Close System: A system that does not interact with environment.
Entropy: A tendency of system to run down or die
Synergy: In organization every department depends upon each other
Subsystems: Parts of system that depend upon each other.
Contingency View
Universalist View (classical perspective) – management
concepts are universal
Case View – Each situation is unique.
Contingency View – A manager’s response depends on
identifying key variables in an organizational situation.
What works in one setting may not work in another.
Contingencies include the environment, industry,
technology and international cultures.
Total Quality Management
Shift from inspection approach to quality control
emphasizing employee involvement in the prevention of
quality problems.
Managing the total organization to deliver quality to
customers.
Significant Elements of TQM– Employee involvement
– Focus on the customer
– Benchmarking
– Continuous improvement
Dr. W. Edwards Deming (1900-1993)
“Father of Quality Movement”
Developed theory and methods to improve the
quality an dependability of manufactured
products.
Application of his work in Japan sparked the
Japanese Industrial Miracle-the transformation of
Japanese business
EXHIBIT 2.9: LEARNING ORGANIZATION VERSUS TRADITIONAL ORGANIZATION
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Current Trends And Issues Learning Organizations and Knowledge Management
– Learning Organization - one that has developed the capacity to continuously learn, adapt, and change
– create learning capabilities throughout the organization• understanding that knowledge is an important resource
– Knowledge Management - involves cultivating a learning culture where organizational members systematically gather knowledge and share it with others in the organization so as to achieve better performance
– managers must transform themselves from bosses to team leaders• learn to listen, motivate, coach, and nurture
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