2 - Evolution of Mgt - Mail to Students

8/9/2019 2 - Evolution of Mgt - Mail to Students

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The Evolution of Management

Thought


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Learning Objectives

Describe how the need to increaseorganizational efficiency and effectivenesshas guided the evolution of managementtheory

Explain the principle of job specialization anddivision of labor, and tell why the study ofperson-tas relationships is central to thepursuit of increased efficiency

!dentify the principles of administration andorganization that underlie effectiveorganizations


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Learning Objectives

#race the change in theories about how managers

should behave to motivate and control employees

Explain the contributions of management science

to the efficient use of organizational resources Explain why the study of the external environment

and its impact on an organization has become a

central issue in management thought


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The Evolution of Management Theory

Figure 2.1


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%istory of &anagement -'ideo


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Adam Smith (18th centuryeconomist)Observed that frms manuactured

pins in one o two dierent ways:Cratsty!e"each wor#er did a!!

steps$

%roduction"each wor#erspecia!i&ed in one step$

PRE-SCIENTIFIC MANAGEMENT

'hus introduced the concept o division of

labor: 'he brea#down o obs into narrowrepetitive tas#s$


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o'he most important pretwentiethcentury

in*uence on mana+ement was the industrialrevolution$ ,achine power was rapid!ysubstituted or human power$

o'he advent o machine power combined withdivision o !abor was !eadin+ to massproduction$

o,ana+ers were needed to orecast demandcoordinate various activities maintenance omachinery and so orth$


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F.W. Taylor and Scientific

Management

)cientific &anagement

The systematic study of the

relationships between people andtasks for the purpose of redesigning

the work process to increase

efficiency*


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Four Princiles of Scientific

Management

)tudy the way worers perform their tass,gather all the informal job nowledge that

worers possess and experiment with ways

of improving how tass are performed #ime-and-motion study


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Management

2/odify the new

methods of

performing tass

into written rulesand standard

operating

procedures


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Management

" /arefully select worers who

possess sills and abilities that match

the needs of the tas, and train them

to perform the tas according to the

established rules and procedures


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Management

$ Establish a fair or acceptable level of

performance for a tas, and then

develop a pay system that provides a

reward for performance above the

acceptable level


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Problems !ith Scientific Management

&anagers fre0uently implemented only the

increased output side of #aylor1s plan*

3orers did not share in the increased

output* )pecialized jobs became very boring, dull*

3orers ended up distrusting the )cientific

&anagement method* 3orers could purposely 4under-perform*5

&anagement responded with increased use

of machines and conveyors belts*


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"dministrative Management Theory

6dministrative

&anagement

#he study of how to

create an organizationalstructure that leads to

high efficiency and

effectiveness*


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"dministrative Management Theory

&ax 3eber

Developed the principles of bureaucracy as a

formal system of organization and

administration designed to ensure efficiencyand effectiveness*


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Weber#s

Princiles of

$ureaucracy

Figure 2.2


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Weber#s Princiles of $ureaucracy

6 manager1s formal authority derives

from the position he holds in the

organization*

2 :eople should occupy positions

because of their performance, not

because of their social standing or

personal contacts*


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" #he extent of each position1s formal

authority and tas responsibilities and

it1s relationship to other positions

should be clearly specified*

$ 6uthority can be exercised effectively

when positions are arranged

hierarchically, so employees nowwhom to report to and who reports to

them*


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7 &anagers must create a well-definedsystem of rules, standard operatingprocedures,

and norms so theycan effectivelycontrol behavior *


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%ules& SOPs and 'orms

%ules formal written instructions that specifyactions to be taen under different circumstancesto achieve specific goals

Standard Oerating Procedures (SOPs)specific sets of written instructions about how toperform a certain aspect of a tas

'orms unwritten, informal codes of conduct that

prescribe how people should act in particularsituations

6 2


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$ureaucracy

*ey +oncets structured net!or, of relationshis among seciali-ed ositions

rules and regulations standardi-e behavior

jobs staffed by trained secialists !ho follo! rules

+ontributions

romotes efficient erformance of routine oerations eliminates subjective judgment by emloyees and management

emhasi-es osition rather than the erson

Limitations

limited organi-ational fleibility and slo!ed decision ma,ing

ignores the imortance of eole and interersonalrelationshis

rules may become ends in themselves


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Fayol#s Princiles of Management

/ivision of Labor; allows for job specialization*

jobs can have too much specialization leading to

poor 0uality and worer dissatisfaction*

"uthority and %esonsibility both formal and informal authority resulting from

special expertise*

0nity of +ommand

Employees should have only one boss*


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Line of "uthority

6 clear chain of command from top tobottom of the firm*

+entrali-ation #he degree to which authority rests at the

top of the organization*

0nity of /irection

6 single plan of action to guide theorganization*


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E1uity- #he provision of justice and the fairand impartial treatment of all employees*

Order- #he arrangement of employees where

they will be of the most value to theorganization and to provide careeropportunities*

2nitiative- #he fostering of creativity and

innovation by encouraging employees to acton their own*


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/isciline


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Stability of Tenure of Personnel

=ong-term employment is important for the

development of sills that improve the

organization1s performance* Subordination of 2ndividual 2nterest to the

+ommon 2nterest

#he interest of the organization taesprecedence over that of the individual

employee*


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Esrit de cors

/omradeship, shared enthusiasm

foster devotion to the common cause

>organization*

6-2(


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"dministrative Management

?ey concepts @ayol1s five functions and $ principles of management

executives formulate the organization1s purpose, secure

employees, and maintain communications

managers must respond to changing developments

/ontributions

viewed management as a profession that can be trained and

developed

emphasized the broad policy aspects of top-level managers

offered universal managerial prescriptions

=imitations

universal prescriptions need 0ualifications for contingencies

2 A l i l 6 h


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HAWTHORNE STUDIES

-Elton Ma!oand roth!esber+er rom harward business schoo! werere.uested to be consu!tants studies at /estern 0!ectrics 2awthorne %!antand be+an with an investi+ation to see i dierent !i+htin+ aectedwor#ers productivity$

-T"e Ha#t"orne e$e%tis an increase in wor#er productivity producedby the psycho!o+ica! stimu!us o bein+ sin+!ed out and made to ee!important$

2*Aeoclassical 6pproach

%uman Besources 6pproach


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3a!thorne Eeriments !llumination Experiments ; &apped worers productivity with

varying levels of illumination >control gp and exp gp Belay 6ssembly room experiments; wor gp of girls newelements lie shorter wor hours,rest pauses,improved physicalconditions etc were maintained* %owever even when withdrawnproductivity increased*>)ocio psychological factors ! amimportant and under observation

Can wiring experiments ;study worers under normal conditions*:rodn records of these $ wrs were compared with earlierrecords however no change * Cut existence of informal cli0uesgroups and informal prodn norms observed > ex peoplemaintained or restricted output in interest of slow performing

worers &ass !nterview :rogramme;researches interviewed to findperception of woring conditions norms etc @indings confirmedimportance of social factors at wor in the total wor environment*


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The 3a!thorne Studies

%uman Belations !mplications

Hawthorne effect worers1 attitudes

toward their managers affect the level of

worers1 performance


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%uman relations movement advocates

that supervisors be behaviorally trained

to manage subordinates in ways that

elicit their cooperation and increase theirproductivity


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!mplications

Cehavior of managers and worers in

the wor setting is as important in

explaining the level of performance as

the technical aspects of the tas


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Demonstrated the importance of

understanding how the feelings,

thoughts, and behavior of wor-group

members and managers affectperformance

6-"7


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3uman %elations

?ey concepts productivity and employee behavior are influenced by the

informal wor group

should stress employee welfare, motivation, and communication

social needs have precedence over economic needs

/ontributions

psychological and social processes influence performance

&aslow1s hierarchy of need

=imitations

ignored worers1 rational side and the formal organization1scontributions to productivity

research overturned the simplistic belief that happy worers are

more productive


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$ehavioral Management Theory

Cehavioral &anagement

#he study of how managers should

personally behave to motivate employees

and encourage them to perform at highlevels and be committed to the achievement

of organizational goals*


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$ehavioral Management

&ary :arer @ollett

/oncerned that #aylor ignored thehuman side of the organization

)uggested worers help inanalyzing their jobs

!f worers have relevant nowledge

of the tas, then they should controlthe tas


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4uestion5

3hat theory assumes the average worer

is lazy, dislies wor and will do as little

as possible

6* #heory F

C* #heory G

/* #heory HD* #heory IH


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Theory 6 and Theory 7

Douglas &cJregor proposed the two differentsets of assumptions about worers*

#heory F assumes the average worer is

lazy, dislies wor and will do as little aspossible*

3orers have little ambition and wish toavoid responsibility

&anagers must closely supervise andcontrol through reward and punishment*


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#heory G assumes worers are notlazy, want to do a good job and the jobitself will determine if the worer lies

the wor* &anagers should allow worers

greater latitude, and create anorganization to stimulate theworers*


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Theory 6 vs. Theory 7

Figure 2.3


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Management Science Theory

/ontemporary approach to management

that focuses on the use of rigorous

0uantitative techni0ues to help

managers mae maximum use oforganizational resources to produce

goods and services*


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4uantitative management utilizeslinear and nonlinear programming,modeling, simulation, 0ueuing theory

and chaos theory* Oerations management

techni0ues used to analyze anyaspect of the organization1s productionsystem*


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Total 4uality Management (T4M)

focuses on analyzing input,

conversion, and output activities to

increase product 0uality*

Management 2nformation Systems

(M2S) provides information vital for

effective decision maing*


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Organi-ational Environment Theory


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The Oen8Systems 9ie!


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Figure 2.4


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The Oen8Systems 9ie!

2nuts; the ac0uisition of external resources

to produce goods and services

+onversion; transforms the inputs into

outputs of finished goods and services* Outut; the release of finished goods and

services to its external environment*


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+losed System

6 self-contained system that is not

affected by changes in its external

environment*

=iely to experience entropy and lose its

ability to control itself


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Systems

)ynergy the performance gains that

result from the combined actions of

individuals and departments

:ossible only in

an organized system

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2 - Evolution of Mgt - Mail to Students