EVOLUTION OF MODERN MANAGEMENT

U.S. INDUSTRIAL REVOLUTION

• POWER GENERATION• TRANSPORTATION• COMMUNICATION

SCIENTIFIC MANAGEMENT

• FREDERICK TAYLOR• HENRY GANTT• FRANK & LILLIAN GILBRETH

FREDERICK TAYLOR• TIME STUDY• STANDARDS FOR WORK• JOB SPECIALIZATION• MANAGERIAL PLANNING & CONTROL OF WORK• WORKER SELECTION & TRAINING• INCENTIVES

HENRY GANTT• GANTT CHARTS• MODIFIED INCENTIVES• INCENTIVES FOR FOREMEN

FRANK & LILLIAN GILBRETH• MOTION STUDIES (Therbligs)• FATIGUE REDUCTION• SUGGESTION SYSTEMS

SCIENTIFIC MANAGEMENTASSUMPTIONS• Productivity is a workplace problem• Managers should plan and direct the work of others• Individuals are economically motivatedCONTRIBUTIONS• “Scientific” study of work (Time & Motion)• Setting of work standards• Use of incentives• Careful selection & training of workers• Division of labor---managers & workers• Productivity & efficiency increasedLIMITATIONS• Social “needs” of workers overlooked• Many studies weren’t very scientific• Loss of self-control alienated workers• Group dynamics were ignored

MANAGEMENT

A FORM OF WORK THAT INVOLVES COORDINATING AN ORGANIZATION’S RESOURCES TOWARD ACCOMPLISHING

ORGANIZATIONAL OBJECTIVES

MANAGEMENT FUNCTIONS (H FAYOL)

PLANNINGORGANIZINGCOMMANDINGCOORDINATINGCONTROLLING

MANAGEMENT PRINCIPLES

DIVISION OF LABOR (Specialization)UNITY OF COMMAND (Only one boss)SCALAR CHAIN OF COMMAND (Hierarchy of Authority)SPAN OF CONTROL (Number of subordinates supervised)

WEBER’S BUREAUCRACY

• DIVISION OF LABORHORIZONTAL SPECIALIZATION

• HIRARCHY OF AUTHORITYVERTICAL SPECIALIZATION

• FORMAL RULES & PROCEDURESENFORCED, DOCUMENTED

• TECHNICAL COMPETENCESELECTION & PROMOTION CRITERIA

• IMPERSONAL TREATMENTNO FAVORITISM

• CENTRALIZED DECISION-MAKINGUNIFORM CONTROL

ADMINISTRATIVE THEORY

ASSUMPTIONS• THERE IS AN IDEAL WAY TO STRUCTURE THE ORGANIZATION AND

TO ADMINISTER THE MANAGEMENT PROCESSES NECESSARY FOR ORGANIZATIONAL SUCCESS

• MANAGEMENT SKILLS ARE GENERALIZABLE

CONTRIBUTIONS• FUNCTIONS & PRINCIPLES OF MANAGEMENT• THE IDEAL BUREAUCRACY• RAISED AWARENESS OF BASIC PROBLEMS LIKELY TO BE FOUND

IN ANY ORGANIZATION

LIMITATIONS• STRESSED A “ONE-BEST-WAY” OF MGMT & ORGANIZATION• THEORIES BASED ON OBSERVATION & INTUITION RATHER THAN

EMPIRICAL INVESTIGATION• PRINCIPLES NOT APPLICABLE TO ORGANIZATIONS WHICH EXIST

IN TURBULENT ENVIRONMENTS

HAWTHORNE PLANT AT WESTERN ELECTRIC

MAYO & ROETHLISBERGER• ILLUMINATION EXPERIMENTS• RELAY ASSEMBLY TESTS• INTERVIEWING• MICA SPLITTING• BANK WIRING ROOM

DISCOVERIES• HAWTHORNE EFFECT• CATHARSIS• INFORMAL GROUP POWER

HUMAN RELATIONS MANAGEMENT

ASSUMPTIONS• WORKERS ARE MOTIVATED BY SOCIAL NEEDS• SATISFIED WORKERS ARE PRODUCTIVE WORKERS

CONTRIBUTIONS• EMPHASIS ON WORKER NEEDS AND MOTIVATION• “HAWTHORNE EFFECT”….ATTENTION GIVEN TO WORKERS HAS AN

IMPACT ON THEIR BEHAVIOR• INFLUENCE OF THE INFORMAL GROUP• MANAGERS NEED STRONG SOCIAL SKILLS

LIMITATIONS• HAPPY, SATISFIED WORKERS AREN’T NECESSARILY PRODUCTIVE• ECONOMIC ISSUES DO AFFECT WORKER PRODUCTIVITY• BORING WORK ISN’T LESS SO WITH A FRIENDLY SUPERVISOR…

MOTIVATION IS STILL A PROBLEM• WORKERS FEEL SUPERVISOR INTEREST IN THEM ISN’T GENUINE…

THEY’RE BEING MANIPULATED!• SHOULD BUSINESS BE RESPONSIBLE FOR MEETING ALL HUMAN NEEDS ON

THE JOB?

TRANSITION TO HUMAN RESOURCES

DOUGLAS MCGREGOR

• THEORY X• THEORY Y

FREDERICK HERZBERG

TWO-FACTOR MOTIVATION THEORY

• HYGIENES• MOTIVATORS

JOB ENRICHMENT

THEORY XTHE AVERAGE HUMAN BEING:

• DISLIKES WORK AND WILL AVOID IT• MUST BE COERCED/CONTROLLED TO ACHIEVE OBJECTIVES• PREFERS DIRECTION• WISHES TO AVOID RESPONSIBILITY• HAS LITTLE AMBITION• WANTS SECURITY ABOVE ALL

THEORY YTHE AVERAGE HUMAN BEING:

• BELIEVES WORK IS AS NATURAL AS PLAY• PREFERS SELF-DIRECTION/CONTROL TO ACHIEVE OBJECTIVES• WILL ACCEPT AND SEEK OUT RESPONSIBILITY• PREFERS TO EXPAND IMAGINATION/CREATIVITY IN WORKPLACE

SOLUTIONS

HUMAN RESOURCES MANAGEMENT

ASSUMPTIONS• INTERESTING WORK MOTIVATES INTRINSICALLY• WORKERS ARE TRUSTWORTHY…GIVE THEM RESPONSIBILITY• THE MANAGER’S JOB IS TO CHALLENGE WORKERS & TO

DEVELOP THEIR TALENTSCONTRIBUTIONS• THEORY X AND THEORY Y• PARTICIPATIVE DECISION-MAKING AND MANAGEMENT• JOB REDESIGN AND JOB ENRICHMENT• MANAGEMENT BY OBJECTIVES• MORE RIGOROUSLY-TESTED THEORIESLIMITATIONS• NOT EVERYONE WANTS A CHALLENGING JOB• BEHAVIOR IS COMPLEX…THEORIES HAVE MANY EXCEPTIONS• ELEGANT THEORIES MAKE LITTLE SENSE TO MANAGERS…A

LACK OF ACCEPTANCE PROBLEM

QUANTITATIVE MANAGEMENT APPROACHES

MANAGEMENT SCIENCE

DuPONT (CPM) Critical Path MethodUS NAVY (PERT) Program Evaluation and Review Technique

OPERATIONS RESEARCH

WORLD WAR II -- England

QUALITY ASSURANCE

STATISTICSStresses the use of mathematical models to aid in managerial decision-making

SYSTEMS VIEWS

• SEES THE “BIG PICTURE” IN ORGANIZATIONS• STRESSES EXTERNAL ENVIRONMENT INFLUENCES• HOW THE PARTS RELATE TO EACH OTHER TO CREATE THE

WHOLE• HOW TO LINK UNITS TOGETHER HARMONIOUSLY SO THAT

AN EFFICIENT SYSTEM EMERGES (INTEGRATION)

INPUTS TRANSFORMATION PROCESSES OUTPUTS

FEEDBACK

CLOSED vs OPEN SYSTEMS• SUBSYSTEMS

** DON’T MAKE ORGANIZATIONAL DECISIONS UNTIL YOU UNDERSTAND THE WHOLE SYSTEM

CONTINGENCY VIEWS

THERE IS NO “ONE BEST WAY” TO MANAGE

THERE ARE NO UNIVERSAL PRINCIPLES OF MANAGEMENT

ANALYZE THE SPECIFIC SETTING & CIRCUMSTANCES

CAREFULLY STUDY THE SITUATION…KEEP YOUR EYES OPEN

FIND THE APPROACH THAT BEST FITS THE SITUATION

DON’T FOLLOW “FADS”…IT ALL DEPENDS…

EMPHASIZE DIAGNOSIS AND FLEXIBILITY

MANAGERS MUST LEARN TO BE FLEXIBLE

TYPE A, J, and Z ORGANIZATIONSOUCHI (80)

TYPE A ORGANIZATION (American)SHORT-TERM EMPLOYMENTRAPID EVALUATION & PROMOTIONHIGHLY SPECIALIZED CAREERSINDIVIDUAL DECISION-MAKING AND INDIVIDUAL RESPONSIBILITYEXPLICIT, FORMAL CONTROLS, SEGMENTED CONCERN

TYPE J ORGANIZATION (Japanese)LIFETIME EMPLOYMENTSLOW EVALUATION & PROMOTIONNONSPECIALIZED CAREER PATHCONSENSUAL DECISION=MAKING, COLLECTIVE RESPONSIBILITYIMPLICIT, INFORMAL CONTROLS, HOLISTIC CONCERN

TYPE Z ORGANIZATION (Modified American)LONG-TERM EMPLOYMENTSLOW EVALUATION & PROMOTIONMODERATELY SPECIALIZED CAREERSCONSENSUAL DECISION-MAKING, INDIVIDUAL RESPONSIBILITYIMPLICIT, INFORMAL CONTROLS, HOLISTIC CONCERNA CLEAR ORGANIZATIONAL PHILOSOPHY

JAPANESE MANAGEMENT MODELSHATVANY & PUCIK (81)

STRATEGIES1. DEVELOPMENT OF AN INTERNAL (CLOSED) LABOR MARKET2. EMPLOYEE-ORIENTED, COOPERATIVE COMPANY PHILOSOPHY3. CAREFUL SOCIALIZATION & DEVELOPMENT OF PERSONNEL

SPECIFIC TECHNIQUES USEDJOB ROTATIONSLOW EVALUATION & PROMOTIONGROUP & TEAM EMPHASISOPEN, FACE-TO-FACE COMMUNICATIONSCONSULTATIVE DECISION-MAKINGINTIMATE EMPLOYEE CONCERN

KEYS TO SUCCESSFUL APPLICATION1. ARTICULATE A COMPANY PHILOSOPHY2. PROVIDE LONG TENURE3. PRACTICE JOB ROTATION4. PRACTICE CONSULTATIVE DECISION-MAKING

IN SEARCH OF EXCELLENCEPETERS & WATERMAN (82)

A BIAS TOWARD ACTIONJUST “DO IT”….KILL THE SNAKE, DON’T STUDY IT TO DEATH!

CLOSENESS TO THE CUSTOMERCUSTOMER DRIVEN DECISION-MAKING

AUTONOMY & ENTREPRENEURSHIPSTRUCTURED TO ENCOURAGE INNOVATION & CHANGE

PRODUCTIVITY THROUGH PEOPLEPARTICIPATION AND CONSENSUS STRESSED

HANDS ON, VALUE DRIVENTHE VISION & MISSION OF THE ORGANIZATION ARE CLEAR AND KNOWN TO EVERYONE WITHIN THE FIRM. LEADERS/MANAGERS ARE WILLING TO “GET INVOLVED” IN PROBLEMS AT ALL LEVELS.

STICKING TO THE KNITTINGSTAY FOCUSED ON WHAT YOU DO BEST

SIMPLE FORM, LEAN STAFFKEEP STRUCTURES SIMPLE AND LEAN

SIMULTANEOUS LOOSE-TIGHT PROPERTIESKEEP TIGHT CONTROL ON THE FIRM’S CORE VALUESSTAY FLEXIBLE ELSEWHERE

TOTAL QUALITY MANAGEMENT (TQM)

• Focuses on managing the total organization to deliver quality to customers.

• Requires a shift from an inspection-oriented approach to employee involvement in the prevention of quality problems.

1. EMPLOYEE INVOLVEMENTTRAIN, INVOLVE, EMPOWER WORKERS

2. FOCUS ON THE CUSTOMERFIND OUT WHAT THE CUSTOMER WANTS

3. BENCHMARKINGCOMPARE PRODUCTS/SERVICES WITH COMPETITORS

4. CONTINUOUS IMPROVEMENTSMALL, INCREMENTAL IMPROVEMENTS ALL THE TIME

CONTEMPORARY ORGANIZATIONAL BEHAVIOR

INTERDISCIPLINARY FOCUSPSYCHOLOGYSOCIOLOGYPOLITICAL SCIENCE

MOSTLY DESCRIPTIVE OF RELATIONSHIPS BETWEEN VARIABLESIMMATURITY OF THE FIELDCOMPLEXITY OF STUDYING BEHAVIORLACK OF VALID, RELIABLE MEASURES

SYSTEMS ARE STRESSEDORGANIZATIONS ARE A SET OF INTERRELATED ELEMENTS THAT FUNCTION AS A WHOLE

CONTINGENCY PERSPECTIVETHERE ARE NO UNIVERSAL PRINCIPLESWE MUST STUDY THE SITUATION / SETTING TO FIND THE BEST SOLUTION

MANAGEMENT CHALLENGES TODAYPARADIGM SHIFTS

CHANGING PRODUCTS & TECHNOLOGIESSHIFTS IN WAYS OF THINKING AND MANAGING

CHAOS THEORYTHE ENVIRONMENT IS NOT PREDICTABLELEARN TO BE FLEXIBLE AND ADAPTABLE

WORKPLACE DIVERSITYCHANGING LABOR FORCE

GLOBALIZATIONINTERNATIONAL COMPETITION

THE NEW (LEARNING) ORGANIZATIONSTRONG ON VISION AND CULTURAL VALUESEMPOWERED WORKERSNEW STRUCTURESNEW CAREER PATHS