Management Yesterday and Today

8th edition Steven P. harles Renard C Robbins Mary Coulter LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter. o? Historical Background of Management ? scientific Management o? General Administrative Theorists o? Quantitative Approach to Management ? Toward Understanding organisational carriage o? The establishments Approach o? The Contingency Approach 22 Historical Background of Management ? Ancient Management O Egypt (pyramids) and China (Great Wall) O Venetians (floating warship assembly lines) ? Adam Smith O Published The Wealth of Nations in 1776 v Advocated he division of labor (job specialization) to increase the productivity of workers ? industrial Revolution O Substituted machine power for human labor O Created large organizations in need of management 23 Development of major Management Theories Exhibit 2. 1 24 Major Approaches to Management ? Scientific Management ? General Administrative Theory ? Quantitative Management ? Organizational Beh avior ? Systems Approach ? Contingency Approach ? 25 Scientific Management ? Fredrick Winslow Taylor O The father of scientific management O Published Principles of Scientific Management (1911) vAssociated essay Scientific Management Theory in HealthcareThe theory of scientific management ? Using scientific methods to define the one scoop up way for a job to be done ? Putting the right person on the job with the correct tools and equipment. ? Having a standardized method of doing the job. ? Providing an sparing incentive to the worker. 26 Taylors Four Principles of Management 1.? Develop a science for each element of an individuals work, which will substitute the old rule-of-thumb method. 2.? Scientifically select and then train, teach, and develop the worker. 3.? Heartily cooperate with the workers so as to ensure that all work is done n ossification with the principles of the science that has been developed. 4.? Divide work and responsibility almost equally between management and workers. Exhibit 2. 2 27 Scientific Management (contd) ? postmark and Lillian Gilbreth O Focused on increasing worker productivity through the reduction of wasted motion O Developed the microchronometer to time worker motions and perfect performance ? How Do Todays Managers Use Scientific Management? O Use time and motion studies to increase productivity O pursue the best qualified employees O Design incentive systems based on output 28General Administrative Theorists ? Henri Fayol O Believed that the practice of management was distinct from otherwise organizational functions O Developed fourteen principles of management that applied to all organizational situations ? Max Weber O Developed a theory of potency based on an ideal type of organization (bureaucracy) v Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism 29 Fayols 14 Principles of Management 1.? percentage of work. 7.? Remuneration. 2.? Authority. 8.? Centralization. 3.? Discipline. 9.? Scalar chain. 4.? Unity of command. 10.? Order. 5.?Unity of direction. 11.? Equity. 6.? Subordination of individual interest to the interests of the organization. 12.? Stability of tenure of personnel. 13.? Initiative. 14.? Esprit de corps. Exhibit 2. 3 210 Webers specimen Bureaucracy Exhibit 2. 4 211 Quantitative Approach to Management ? Quantitative Approach O Also called operations research or management science O Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems O Focuses on improving managerial finality making by applying v Statistics, optimization models, information models, and omputer simulations 212 Understanding Organizational Behavior ? Organizational Behavior (OB) O The study of the actions of great deal at work people are the most important asset of an organization ? Early OB Advocates O Robert Owen O Hugo Munsterberg O Mary Parker Follett O Chester Barnard 213 Early Advocates of OB Exhibit 2. 5 214 The Hawthorne Studies ? A series of productivity experiments conducted at Western Electric from 1927 to 1932. ? experimental findings O Productivity unexpectedly increased under imposed adverse working conditions. O The effect of incentive plans was less than expected. ? Research conclusion O Social norms, group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives. 215 The Systems Approach ? System Defined O A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. ? Basic Types of Systems O Closed systems v Are not influenced by and do not interact with their environment (all system input and output is internal). O Open systems v Dynamically interact to their environments by taking in inputs and transforming them into outputs that are istributed into their environments. 216 The Organization as an Open System Exhibit 2. 6 217 The Contingency Approach ? Conting ency Approach Defined O Also sometimes called the situational approach. O There is no one universally applicable set of management principles (rules) by which to manage organizations. O Organizations are individually different, face different situations (contingency variables), and require different ways of managing. 218 touristed Contingency Variables ? Organization size ? Routineness of task technology ? Environmental uncertainty ? Individual differences Exhibit 2. 7 219