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Based on The History of Management Thought, 5th edition, 2005 by Daniel A. Wren
Citation preview
Chapter
21Science and
Systems in
Management Based on The History of Management Thought, 5th
edition, 2005 by Daniel A. Wren Daniel A. Wren (The Author )
• The Quest For Science in Management
• Operations Research• Production Management In
Transition• Old Lessons Learned• System and Information• From the Computer Age to
the Information Age• Conclusion
Outline
This note board
belongs to :
Renni
Rengganis
29011025
Quest for Science in
ManagementIn the modern era, rose new idea in
management using scientific method –
roots in Aristotle, Descartes, Babbage, and Scientific
Management.In the 1930’s, scientific management declined in emphasis as society had to cope with problems beyond the production of goods.
From that phenomenon, rose an idea about the need of informal relation in formal organization called social person era.
Scientific era
Social era
Modern era
Quest for
Science in
ManagementWorld War II (1939-1945)
and the renewed growth
large-scale enterprise, however,
created a new environment for management.
the jump in postwar
births, known as the
"baby boom,"
increased the number of
consumers
Source : The Post War
Economy: 1945-1960
From U.S. Department of
Statehttp://
economics.about.com/od/useconomichistory/a/
post_war.htm
Strong economic growth in the post world war II period , The nation's gross national product rose from about
in 1940 $200,000 m in 1950 $300,000 m in 1960 >$500,000 m
Impact
Patrick Maynard
Stuart Blackett (1897-1974)
Operations research
applications after the war were
primarily in the area of production
management.
Attempted to apply the scientific
method and to quantify complex
problems.
Arthur D. Little, Inc. recognize that
methods of operation research were applicable to
industrial.
Operations Research
Modern science management inverted from scientific management.
The search was for a use of science in management, not a science of management
Operations Research
Tools of mathematic
and science used to
help solve the old-
management problem
of the optimum
allocation of scarce
resources toward a
given goal
Scientific Management
Operation Research
“One Best Way” “Optimal”
Production Management in Transition
Gordon and Howell’s 1959 remark recommended more mathematics for business school students.
Production management and operations research
merged into production/operations management.
Statistics and mathematics
are used to solving problem,
specific techniques for
quantifying variables and
relationship. For the purposes
of prediction and control.
• Linear programming
• Game theory
• Decisions trees
• Monte Carlo method, etc
• The Gantt Chart concept was extended with newer variations for planning and controlling, PERT and CPM (Critical Planning Method)
• PERT and CPM together plan a network of activities, their relationships, and their interaction along a path to a given completion point.
The Application of the scientific method and the use of mathematics in managerial problems could provide better information for decision makers.
Old Lessons
Relearned
Product quality was important historically – the hallmark concept.
Wickham Skinner – incorporating manufacturing into overall corporate strategy.
Richard Schonberger – integrating the firm around a “chain of customers.”
Statistical quality control was pioneered at Western Electric by Walter Shewhart (1891-1967).
Edwards Deming (1900-1993) revived Shewhart’s ideas and took them to Japan.
Quality Management began the top of the organization, the goal was the reduction of variation through continuous improvement (KAIZEN)
Inventory Management
Materials Requirements Planning (MRP) developed.
Taiichi Ohno and “just-in time” planning for materials delivery
Systems and Information
“Systems” – an ancient concept found new meaning in General Systems Theory (GST)
GST – a product of Ludwig von Bertalanffy, was a Gestalt concept. The GST view was:
– Study of the whole organism– Organisms sought equilibrium– All systems were open
Ludwig von
Bertalanffy
In modern systems there are number of characteristics :
1. A goal for the organization, some reason for its existence
2. Some input of materials, equipment, and human effort.3. Transform these inputs into useful products/services to meet the goal of
organization4. A need to measure,
control, acquire the information about performance
Computer Age to the Information
Age – Death to the Slide Rule
The first Computers were monster mainframe, can handle U.S census, scientific calculation, accounting, payroll and inventory problem.
Originally called “microcomputers” powered by Intel-made chip.
In 1975 Bill Gates
and Paul Allen
founded Microsoft
In 1977, 72% of
microcomputer
market held by
Apple, Commodore, and
Tandy.
In 1980, IBM decided to enter the Market, and microcomputer began its evolution to personal computers even laptop or Tablet PC
So last year
Fiber optics would
have a dramatic
impact on the
telecommunications
industry.
Internet, founded by The Department of Defense in 1960 provide worldwide network for messages
Satellite would enable wireless messages across geographic
Those technology influenced the way of managed. Technology is the handmaiden of management theory and practice.
Information has always been necessary for managerial decision making. For information system, applying the appropriate computer hardware and software that will position the firm in stronger competitive position.
Conclusion
3). The development of computers and micro circuitry led to new methods to assist managerial decision making.
1). The chapter traced the search for order through science and systems in management.
2). Operations research was viewed as a modern version of early scientific approaches to problem solving.
3). Others outstripped U.S. industrial productivity gains as they learned production lessons overlooked in the U.S.
Always think positively
MESTAKUNG