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Evolution of
Management
Thought
Topic
2
Prof. James J. BarkocyBus100
2–2
Machine
Power
Mass
Production
Wealth
of Nations
Division
of Labor
Early
Examples
Adam
Smith
Industrial
Revolution
Historical Background of
Management Theories
Egyptian
Pyramids
Great Wall
of China
Venetians
2–3
Evolution of Management Thought
Scientific Management
F.W. Taylor
Gilbreths
Henry
Ford
Administrative Management
Henri
Fayol
Max
Weber
Behavioral Management
Early Advocates
Hawthorne
Studies
McGregor
Maslow
Herzberg
Management Science
QM,OM,
TQM
MIS
“Whiz Kids”
Organizational Environment
Open
Systems
Contingency Theory
2–4
Advocates
of Scientific
Management
Taylor
Gilbreths
Ford
2–5
Taylor’s Four Principles of Management
Study the way workers perform their task and develop a science for each element of an individual’s work.
Codify the new methods of performing tasks into written rules and standard operating procedures.
Scientifically select and then train, teach, and develop the worker.
Establish a fair level of performance and a pay system that rewards performance. Management takes over all
work for which it is better fitted than the workers.
1.
2.
3.
4.
2–6
Administrative
Management Theory
Henri
Fayol
Max
Weber
Fayol’s 14 Priniciples of Management
2–7
• Specialization increases output by making employees efficient.
Division of Labor
• Managers must be able to give orders. Authority gives them that right. With authority, however, goes responsibility.
Authority
• Employees must obey and respect the rules that govern the organization.Discipline
• Every employee should receive orders from only one superior.
Unity of Command
• The organization should have a single plan of action to guide managers and workers.
Unity of Direction
• The interests of any one employee or group should not take precedence over the interests of the organization.
Subordination
• Workers must be paid a fair wage for their services.Remuneration
Fayol’s 14 Priniciples of Management
2–8
• Subordinates should be involved in decision making.Centralization
• A single line of authority from the lowest ranks to top management. This should be limited.
Scalar Chain
• People and materials should be in the right place at the right time.Order
• Managers should be kind and fair to their subordinates.Equity
• Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.
Stability of Tenure
• Employees who are allowed to originate and carry out plans will exert high levels of effort.
Initiative
• Promoting team spirit will build harmony and unity within the organization.
Esprit de corps
2–9
Weber’s Ideal Bureaucracy
2–10
Early Advocates of Behavioral Management
2–11
The Hawthorne Studies
• Studies of how characteristics of the work setting
affected worker fatigue and performance at the
Hawthorne Works of the Western Electric Company from
1924-1932.
Worker productivity was measured at various levels of light
illumination.
• Experimental findings
Productivity unexpectedly increased under imposed adverse
working conditions.
The effect of incentive plans was less than expected.
• Research conclusion
Demonstrated the importance of understanding how the feelings,
thoughts, and behavior of work-group members and managers
affect performance
2–12
• Self-Actualization
• Esteem
• Social
• Safety
• Physiological
Maslow’s
Hierarchy
of Needs
2–13
Dislike Work
Enjoy Work
Avoid Responsibility
Little Ambition
Theory X
Workers
Accept Responsibility
Self-Directed
Theory Y
Workers
Contrasting Views Of Satisfaction-Dissatisfaction
Satisfaction No Satisfaction No Dissatisfaction Dissatisfaction
Motivators Hygienes
Satisfaction Dissatisfaction
Herzberg’s View
Traditional View
2-14
Herzberg’s Motivation-Hygiene Theory
2-15
2–16
Management Science
Quantitative Approach
• Also called operations research.
• Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems
• Focuses on improving managerial decision making by applying: Statistics, optimization models, information models, and computer simulations
2–17
Management Science
Operations management
provides managers a set of techniques they can use to analyze any aspect of an organization’s production
system to increase efficiency
Management information systems
• help managers design systems that provide information that is vital for effective decision making
• Information networks
2–18
Total Quality Management(TQM)?
Intense focus on the customer
Concern for continual improvement
Process-focused
Improvement in the quality of everything
Accurate measurement
Empowerment of employees
2–19
The Organization as an Open System
2–20
The Contingency Theory
Contingency Theory Defined
• The idea that the organizational structuresand control systems manager choose arecontingent on characteristics of the externalenvironment in which the organizationoperates.
• “There is no one best way to organize”
2–21
Popular Contingency Variables
Organizationsize:
as size increases, so do problems
of coordination
Routinenessof task
technology: routine
technology requires a different
structure and approach than
non-routine
Environmental uncertainty:
what works in a stable
environment may be
inappropriate when change
is rapid
Individual differences: individuals
differ in terms of their desire
for growth, autonomy,
tolerance of ambiguity, and expectations
2–22
Contingency Theory