Unit 2 - The Evolution of Management_4cd21aac1a7bbba7ed34f68413176a1d.pptx

Management

1. Introduction to Management Lecture #2 The Historical Development of Management Source: Daft, R. & Marcic , D. (2011). Management: The new workplace. 7 th ed. Southwestern-Cengage Learning. Chp.1. 1

2. Objectives At the end of this unit, the student will be able to: Describe the historical forces influenced the practice of management Distinguish the Major Components of the Classical and Humanistic Management Perspectives and their Relevance to Modern Management Practices. Explain the Management Science Perspective to Organizations. Distinguish the major concepts of Systems Theory, Contingency View of Management, Total Quality Management and their applicability to current organizations. Explain the concept of the Learning Organization and show how its components impact today’s management and organizations. Explain how the Technology Driven Workplace is changing the nature of management. Explain how the Open (Collaborative) Innovation is changing the nature of management. 2

3. Historical Forces of Management Studying history is a way to achieve strategic thinking, see the big picture, and improve conceptual skills. The forces that have influenced organizations and the practice of management include: Social Political and, Economic 3

4. The Forces Social Forces – the aspects of a culture that guide and influence relationships among people – their values, needs and standards of behavior Political Forces – the influence of political and legal institutions on people and organizations Economic Forces - pertain to the availability, production, and distribution of resources in a society. Economic forces influence the allocation of scarce ’s resources. (Daft, 2005) 4

5. 5 Management Perspectives Over Time

6. The Classical Perspective The early study of management as we know it today began with what is now called the Classical Perspective. The Classical Perspective emerged during the nineteenth and early twentieth centuries that emphasized a rational, scientific approach to the study of management and sought to make organizations efficient operating machines. 6

7. The Classical Perspective The challenges of management between 1880 and 1920 saw the evolution of modern management with the classical perspective. Under this perspective, three distinct areas of development that have been identified: Scientific Management Bureaucracy Administrative Principles 7

8. Scientific Management Scientific Management was an era that emphasized scientifically determined changes in management practices. It arose as the solution to improving labor productivity . The emphasis was on trying to find the best way to get the most work done by examining how the work process was accomplished and by scrutinizing the skills of the workforce. 8

9. Contributors to Scientific Management Frederick Taylor Henry Gantt Frank and Lillian Gilbreth 9

10. Frederick Taylor (1856-1915) Taylor suggested that decisions based on rules of thumb and tradition be replaced with precise procedures developed after careful study of individual situations. He argued that labor productivity could be improved by scientifically determined management practices. 10 the father of scientific management

11. Henry Gantt (1861 – 1919) An associate of Taylor’s, developed the Gantt Chart , a bar graph that measures planned and completed work along each stage of production by time elapsed. A Gantt chart, commonly used in project management, is one of the most popular and useful ways of showing activities (tasks or events) displayed against time. 11

12. Frank and Lillian Gilbreth Frank Gilbreth (1868-1924) , pioneered time and motion study . He emphasized efficiency and focused on achieving the one best way to do work. Frank and his wife Lillian studied job motions using a motion‐picture camera and a split‐second clock. When her husband died at the age of 56, Lillian continued their work. Lillian Gilbreth (1878-1972), The First Lady Of Management - pioneered the field of industrial psychology and made substantial contributions to human resource management. 12

13. Contributions of Scientific Management Developed standard methods for performing each job Selected workers with appropriate abilities for each job Trained workers in standard methods Supported workers by planning their work and eliminating interruptions Provided wage incentives to workers for increased output Demonstrated the importance of compensation for performance Initiated the careful study of tasks and jobs Demonstrated the importance of personnel selection and training 13

14. Criticisms of Scientific Mgmt Did not appreciate the social context of work and higher needs of workers Did not acknowledge variance among individuals Tended to regard workers as uninformed and ignored their ideas and suggestions 14

15. BUREAUCRACY Main concepts developed by Max Weber (German Sociologist) . In the late 1800s, Max Weber disliked that many European organizations were managed on a “personal” family‐like basis and that employees were loyal to individual supervisors rather than to the organization. He believed that organizations should be managed impersonally and that a formal organizational structure, where specific rules were followed, was important. 15

16. Weberian Bureaucracy Weber envisioned organizations that would be managed on an impersonal, rational basis . Weber believed that an organization based on rational authority would be more efficient and adaptable to change This form of organization was called a bureaucracy. 16

17. Characteristics of Bureaucracy Division of Labor - clear definitions of authority and responsibility Positions organized - in a hierarchy of authority Managers subject to rules and procedures - to ensure reliable, predictable behaviour Management separate from the ownership of the organization 17

18. Characteristics of Bureaucracy Administrative acts and decisions - recorded in writing Personnel selected and promoted - based on technical qualifications 18

19. Criticism of Bureaucracy The term bureaucracy has taken on a negative meaning in today’s organizations and is associated with endless rules and red tape . 19

20. ADMINISTRATIVE PRINCIPLES Whereas scientific management focused on the productivity of individual workers, the administrative principles approach focused on the total organization . Contributors to this approach include: Henri Fayol Mary Parker Follett Chester I. Barnard 20

21. Henri Fayol (1841-1925) A mining engineer in France, worked his way up to become head of a major mining group known as Comambault . In his most significant work General and Industrial Management, Fayol discussed 14 general principles of management, several of which are part of management philosophy today. 21

22. Some of Fayol’s Principles Unity of command – each subordinate receives orders from one – and only one – superior Division of Work – managerial and technical work are amenable to specialization to produce more and better work with the same amount of effort Unity of direction – similar activities in an organization should be grouped together under one manager. Scalar chain – a chain of authority extends from the top to the bottom of the organization and should include every employee 22

23. Fayol’s Principles It was Fayol who identified the five basic functions or elements of management as we know it today: Planning Organizing Commanding (Leading) Coordinating (Informational Role) Controlling 23

24. Mary Parker Follett (1868-1933) An American social worker, management consultant and pioneer in the fields of organizational theory and organizational behaviour. Along with Lillian Gilbreth, Mary Parker Follett was one of two great women management gurus in the early days of classical management theory. Her approach to leadership stressed the importance of people rather than engineering techniques. 24

25. Issues Addressed by Mary Parker Follett Ethics Power Coaching ; how to lead in a way that encourages employees to do their best Empowerment ; facilitating rather than controlling employees and allowing employees to act depending on the authority of the situation 25

26. Chester I. Barnard (1886 – 1961) His major contribution was the concept of the Informal Organization . 26

27. Concept of the Informal Organization The informal organization occurs in all formal organizations and includes cliques and naturally occurring social groupings. Barnard argued that organizations are not machines and informal relationships are powerful forces that can help the organization if properly managed. He is also credited with developing the Acceptance Theory Of Authority. 27

28. The Acceptance Theory of Authority Managers have more authority than employees. It suggested that authority flows downward but depends on acceptance by the subordinate. Managers should treat employees properly because their acceptance of authority may be critical to organization success in important situations. 28

29. HUMANISTIC PERSPECTIVE Humanistic Perspective on management emphasized the importance of understanding human behaviors, needs and attitudes in the workplace as well as social interactions and group processes. 29

30. Subfields of the Humanistic Perspective Human Relations Movement (Behavioral Management Theory) Human Resources Perspective Behavioral Sciences Approach 30

31. Human Relations Movement Behavioural theorists believed that a better understanding of human behaviour at work, such as motivation, conflict, expectations, and group dynamics, improved productivity. The early work on industrial psychology and personnel selection received little attention because of scientific management. A series of studies at a Chicago electric company, which became known as the Hawthorne studies , changed all that. 31

32. The Hawthorne Studies A series of experiments on worker productivity begun in 1924 by Professor Elton Mayo of Harvard University, at the Hawthorne plant of Western Electric Company in Illinois, U.S.A. The study was in two parts. The first study was conducted by a group of engineers seeking to determine the relationship of lighting levels to worker productivity. Surprisingly, the outcome proved that worker productivity increased as the lighting levels decreased — that is, until the employees were unable to see what they were doing, after which performance naturally declined. In the second study, five female workers were selected and given special privileges. This experiment also resulted in significantly increased rates of productivity. In this case, Mayo and Roethlisberger concluded that the increase in productivity resulted from the supervisory arrangement rather than the changes in lighting or other associated worker benefits. 32

33. Conclusions of the Hawthorne Studies Though controversial in interpretations, it is agreed that productivity increased, and money was not the cause. It was believed that the factor that best explained increased output was human relations . Employees performed better when managers treated them in a positive manner. The general conclusion from the Hawthorne studies was that human relations and the social needs of workers are crucial aspects of business management. 33

34. Benefits of the Hawthorne Studies The interpretation that employees’ output increased when managers treated them in a positive manner started a revolution in worker treatment for improving organizational productivity. Despite flawed methodology or inaccurate conclusions, the findings provided the impetus for the human relations movement . 34

35. The Human Resources Perspective The Human Resources Perspective maintained an interest in worker participation and considerate leadership but shifted the emphasis to consider the daily tasks that people perform. Jobs should be designed so that tasks are not perceived as dehumanizing or demeaning but instead allow workers to use their full potential. 35

36. Contributors to the Human Resources Perspective Two of the best-known contributors to the human resources perspective were: Abraham Maslow (1908-1970) Douglas McGregor (1906-1964) 36

37. Maslow’s Hierarchy of Needs He developed what is known as “Hierarchy of Needs”. They are (from the lowest to the highest): Physiological Needs Safety Needs Belongingness Esteem Self-Actualization 37

38. Douglas McGregor Assumptions of Theory X The average human being has an inherent dislike of work and will avoid it if possible. Because of the human characteristic of dislike for work, most people must be coerced, controlled, directed, or threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all. 38

39. Assumptions of Theory Y The expenditure of physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work. External control and the threat of punishment are not the only means for bringing about effort toward organizational objectives. A person will exercise self-direction and self-control in the service of objectives to which he or she is committed. The average human being learns, under proper conditions, not only to accept but to seek responsibility. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population. 39

40. The Behavioral Sciences Approach Behavioral science draws from sociology, psychology, anthropology, economics and other disciplines to understand employee behavior and interaction in an organizational setting. One specific set of management techniques based in the behavioral sciences approach is O rganization Development (OD). 40

41. What is the Focus of OD? OD focuses on the human and social aspects of the organization and works to change attitudes and relationships among employees, helping to strengthen the organization’s capacity for adaptation and renewal. 41

42. Management Science Perspective (The Quantitative School of Management) During World War II, mathematicians, physicists, and other scientists joined together to solve military problems. The quantitative approach to management involves the use of quantitative techniques, such as statistics, information models, computer simulations, and other quantitative techniques to management decision-making and problem-solving. Techniques such as the Economic Order Quantity (EOQ), etc. 42

43. Contribution - Management Science Perspective Operations Management, using quantitative techniques to solve manufacturing problems Managers can use computer models to figure out the best way to do something – saving both time and money Information technology is the most recent subfield of the management science perspective. 43

44. SYSTEMS THEORY A system is a set of interrelated parts that function to achieve a common purpose. A systems theory is an extension of the humanistic perspective that describes organizations as open systems that are characterized by entropy, synergy, and subsystem interdependence. 44

45. Systems Theory A system functions by acquiring inputs from the external environment , transforming them in some way, and discharging outputs back to the environment. There are five components: Inputs – material, labor, financial or information Transformation process – use of production technology to change the inputs into outputs Outputs – the organization’s products and services Feedback – knowledge of the results that influence the selection of inputs during the next cycle of the process Environment – surrounding the orgn . – social, political and economic forces. 45

46. Contingency View An extension of the humanistic perspective in which the successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand. What works in one setting might not work in another, each organization would be perceived as being unique. 46

47. Total Quality Management TQM is a concept that focuses on managing the total organization to deliver quality to customers. This approach infuses quality values throughout every activity within a company 47

48. The Learning Organization The learning organization can be defined as one in which everyone is engaged in identifying and solving problems , enabling the organization to continuously experiment, change and improve 48

49. Managing the Technology-Driven Workplace Many employees perform much of their work on computers and may work in virtual teams, connected electronically to colleagues around the world. Even in factories that produce physical goods, machines have taken over much of the routine and uniform work, freeing workers to use more of their minds and abilities. 49

50. Managing the Open (Collaborative) Innovation Employees are empowered to seek out change through external collaborations with companies, individuals to create innovation Open innovation challenges are a true cultural break from the company silo mentality and the secrecy traditionally associated with the corporate R&D culture. 50

51. Social Business (Social Media) Building Brand Awareness and Reputation Customer Engagement and Relationship Building Driving Sales and Lead Generation Market Research and Competitive Analysis Crisis Management and Reputation Protection 51

52. The People-Driven Workplace (Boss less) People-driven workplaces represent a shift away from traditional hierarchies. Emphasizes employee empowerment, autonomy, and collaboration. Managers adopt a facilitative and coaching role. 52

53. The People-Driven Workplace (Boss less) Trust and Empowerment Distributed Leadership Collaboration and Communication Performance Management Adaptability and Change Management 53

54. The People-Driven Workplace (Boss less) Challenges with this system: Culture Shift Clear Communication and Alignment Decision-Making and Conflict Resolution Accountability and Performance Skill Development Benefits Increased Employee Engagement and Motivation Innovation and Agility Attracting and Retaining Top Talent Improved Organizational Culture 54

55. 55 Management Perspectives Over Time

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57. EL FIN!!! 57