Embed Size (px)
Citation preview
UBMM1013 MANAGEMENT PRINCIPLES
Topic 2 The Evolution of
Management Thinking
Learning Objectives
Understand how historical forces influence the practice of management.
Identify and explain major developments in the history of management thought.
Describe the major components of the classical and humanistic management perspectives.
Discuss the management science perspective and its current use in organizations.
Learning Objectives (contd.)
Explain the major components of systems theory, the contingency view, and total quality management.
Describe the learning organization and the changes in structure, empowerment, and information sharing that managers make to support it.
Discuss the technology-driven workplace and the role of outsourcing, supply chain management, enterprise resource planning, knowledge management systems, and customer relationship management.
Organization and Management
Organization is a collection of people working together in a division of labour to achieve a common purpose
Management is the attainment of organizational goals in an effective and efficient manner through four functions:
• planning • organizing• leading• controlling
Organization and Management
Management philosophies and organization forms change over time to meet new needs
Some ideas and practices from the past are still relevant and applicable to management today
A study of the past contributes to understanding both the present and the future
Forces Influencing Management and Organisations
Forces Influencing Management and Organisations
2.1 Social Forces2.2 Political Forces2.3 Economic Forces
Management and Organisations
Social Forces
2.1 Social Forces – aspects of a culture that guide and influence relationship among people. What do people values? What do people need? What are the standards of behavior among
people?
These forces shape the social contract which refer to the unwritten, common rules and perceptions about relationships among people and between employees and management
Social forces Social contract
Political Forces
2.2 Political Forces - influence of political and legal institutions on people & organizations
Political forces include basic assumptions underlying the political system such as the desirability of self-government, property rights, contract rights, The definition of justice The determination of innocence or guilt of
a crime
Economic Forces
2.3 Economic Forces - forces that affect the availability, production, & distribution of a society’s resources among competing users
The new emerging economy is based largely on ideas, information, and knowledge; supply chains have been revolutionized by digital technology
Management practices and perspectives vary in response to these social, political, and economic forces; during hard times, manager look for ideas to help them cope.
Forces Influencing Organizations and Management
Forces Influencing Organizations and Management
2.1 Social Forces2.2 Political Forces2.3 Economic Forces
Organisation and Management
Management practices and perspectives vary in response to these social, political, and economic forces; during hard times, manager look for ideas to help them cope.
Management Perspectives Over Time
Classical Perspective
The classical perspective emerged during the 19th and 20th centuries
The factory system of the 1800s had challenges: tooling plants, organizing managerial structure, training non-English speaking employees, scheduling complex manufacturing and
operations dealing with increased labor dissatisfaction
and resulting strikes These new problems demanded a new
perspective on coordination and control
Classical Perspective
Make organizations efficient operating machines
Rational, scientific approach to management The overall classical perspective as an
approach to management was very powerful and gave companies fundamental new skills for establishing high productivity and effective treatment of employees
This perspective contains three subfields:i. Scientific Managementii. Bureaucratic Organizations
iii. Administrative Principles
Classical Perspective
Scientific Management
BureaucraticOrganizations
AdministrativePrinciples
Scientific Management:
A subfield of the classical management perspective that emphasized scientifically determined changes in management practices as the solution to improving labour productivity
Scientific Management:
Frederick W. Taylor
Henri Gantt
Frank B and Lilian M. Gilbreath
known as the father of scientific management
Scientific Management: Taylor 1856-1915
Frederick W. Taylor – known as the father of scientific management
Emphasized scientific changes in management to improve labor productivity
Taylor suggested decisions based on rules of thumb and tradition be replaced with precise work procedures developed after study of the situation
Scientific Management
Henri Gantt developed the Gantt Chart – a bar graph that measures planned and completed work
Scientific Management
Frank B and Lilian M. Gilbreath pioneered time and motion study, which stressed efficiency and the best way to do a job
Frank is known for work with brick layers, but surgeons were able to save countless lives through the application of the time and motion study
Lilian pioneered the field of industrial psychology and made substantial contributions to human resource management
Bureaucracy Organizations
Max Weber 1864-1920
Prior to Bureaucracy Organizations European employees were loyal to a single
individual rather than to the organization or its mission
Resources used to realize individual desires rather than organizational goals
Systematic approach –looked at organization as a whole
A subfield of the classical management perspective that emphasized management on an impersonal, rational basis through such elements as clearly defined authority and responsibility, formal record-keeping and separation of management and ownership
Characteristic of Weberian Bureaucracy
Positions organized in a hierarchy of authority
Managers subject to Rules and procedures
that will ensure reliable predictable behavior
Personnel are selected and promoted based
on technical qualifications
Administrative acts and decisions recorded
in writing Management separate from the ownership of the organization
Division of labor with Clear definitions of
authority and responsibility
THE IDEAL BUREAUCRACY
Administrative Principles
Contributors: Henri Fayol, Mary Parker, and Chester I. Barnard
Focus: A subfield of the classical management
perspective that focuses on the total organization rather than the individual worker, delineating the management functions of planning, organizing, commanding, coordinating and controlling.
Henri Fayol 1841-1925
Division of labor Authority Discipline Unity of
command Unity of direction Subordination of
individual interest
Remuneration
Division of labor Authority Discipline Unity of
command Unity of direction Subordination of
individual interest
Remuneration
Centralization
Scalar chain Order Equity Stability and
tenure of staff
Initiative Esprit de
corps
Centralization
Scalar chain Order Equity Stability and
tenure of staff
Initiative Esprit de
corps
14 General Principles of Management
Mary Parker Follett 1868-1933
Importance of common super-ordinate goals for reducing conflict in organizations Popular with businesspeople of her day Overlooked by management scholars Contrast to scientific management Reemerging as applicable in dealing with
rapid change in global environment
Leadership – importance of people vs. engineering techniques
Chester Barnard 1886-1961
Informal Organization
Acceptance Theory of Authority
Chester Barnard 1886-1961
Informal Organization Cliques Naturally occurring social groupings Argued that organizations are not
machines and informal relationship are powerful forces that can help the organization if properly managed
Chester Barnard 1886-1961
Acceptance Theory of AuthorityFree willCan choose to follow management
orders and acceptance can be critical to success
Management Perspectives Over Time
Humanistic Perspective
A management perspective that emerged around the late 19th century
Emphasized understanding human behavior, needs, and attitudes in the workplace
Mary Parker Follett and Chest Barnard advocated a more humanistic perspective on management that emphasized:
Importance of understanding human behaviors
Needs and attitudes in the workplaceSocial interactions and group processes
Humanistic Perspective
The HumanRelations
Movement
The HumanResources
Perspective
The Behavioral
Sciences Approach
Human Relations Movement
Truly effective control comes from within
the individual worker rather than from strict,
authoritarian control
Emphasized satisfaction of employees’
basic needs as the key to increased worker
productivity
Human Relations Movement
Hawthorne Studies
Started in 1895 Four experimental & three control groups Five different tests Test pointed to factors other than
illumination for productivity 1st Relay Assembly Test Room experiment,
was controversial, test lasted 6 years Interpretation, money not cause of
increased output Factor that increased output, Human
Relations
Human Resource Perspective
Suggests jobs should be designed to meet higher-
level needs by allowing workers to use their full
potential
The human resources perspective combines
prescription for design of job tasks with theories of
motivation
2 best known contributors:
Douglas McGregor
( 1906- 1964)
Abraham Maslow (1906-
1970)
Physiological
Safety
Belongingness
Esteem
Self-actualization
Abraham Maslow’s Hierarchy of Needs
Based on needs satisfaction
1908-1970
Abraham Maslow (1906-1970), a psychologist, suggested a hierarchy of needs because he observed that problems usually stemmed an inability to satisfy needs
Dislike work –will avoid it Must be coerced,
controlled, directed, or threatened with punishment
Prefer direction, avoid responsibility, little ambition, want security
Do not dislike work Self direction and
self control Seek responsibility Imagination,
creativity widely distributed
Intellectual potential only partially utilized
Douglas McGregor Theory X & Y
Theory X Assumptions Theory Y Assumptions
1906-1964
Behavioral Sciences Approach
Applies social science in an organizational context
Draws from economics, psychology, sociology, anthropology, and other disciplines
Understand employee behavior and interaction in an organizational setting
One set of management techniques based in the behavioral sciences approach is OD – Organization Development
Other concepts that grew out of the Behavioral Sciences Approach include matrix organizations, self-managed teams, and ideas about corporate culture
Management Science Perspective
Emerged after WW II Applied mathematics, statistics, and
other quantitative techniques to managerial problems
Operations
Managemen
t
Operations
Research
Information
Technology
Operations Research
Operations Research
It consist of mathematical model building and other applications of quantitative techniques to managerial problems
Operations Management
Operations Management
specializes in physical production of goods or services using quantitative techniques to solve manufacturing problems
e.g. forecasting, inventory modeling, linear and nonlinear programming, queuing theory, scheduling, simulation and break-even analysis
Information Technology
Information Technology
reflected in management information systems
These are designed to provide relevant information to managers in a timely and cost-efficient manner
e.g. intranet, extranet, software programs.
Management Perspectives Over Time
Recent Historical Trends
Systems View of Organizations
System Theory
System Theory
A system theory is a set of interrelated parts that function as a whole to achieve a common purpose.
A system functions by acquiring inputs from the external environment, transforming them in some way and discharging outputs back to the environment.
Components of system theory include: Inputs Transformation Process Outputs Feedback Environment
System Theory
Five components in System Theory:
a) Inputs Inputs are the material, human, financial or
information resources used to produce goods and services.
b) Transformation process The transformation process is management’s
use of production technology to change the inputs into outputs.
c) Outputs Outputs include the organization’s products and
services.
System Theory
Five components in System Theory:
d) Feedback Feedback is knowledge of the results that
influence the selection of inputs during the next cycle of the process.
e) Environment The environment surrounding the organization
includes the social, political and economic forces.
Contingency View of Management
Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand
Total Quality Management (TQM)
A concept that focuses on managing the total organisation to deliver quality to customers
The approach infuses quality values throughout every activity, with front-line workers intimately involved in the process
4 significant elements of TQM are: Employment involvement – requires company-wide
participation in quality control. Focus on customer – find out what customer wants. Benchmarking – a process whereby companies find out
how others do something better and imitate or improve it.
Continuous improvement – the implementation of small, incremental improvements in all areas of the organization on an ongoing basis.
The Learning Organization
In the learning organization, everyone identifies and solves problems enabling continuous experiment change, and Improvement
Thus increasing its capacity to grow, learn and achieve its purpose
The essential idea is problem solving, as opposed to efficiency,
e.g. understanding customer needs
Elements of a Learning Organization
Learning Organization
Open Information
Empowered Employees
Team-Based Structure
The Technology-Driven Workplace
Business-to-Consumer (B2C) Selling Products and
Services Online
Business-to-Business (B2B) Electronic transactions Between Organizations
Consumer-to-Consumer (C2C)
Electronic Markets Created by Web-Based
Intermediaries
Types of E-Commerce
Thank You
