Evolution of Management Practices

Evolution of Management Practices

• Management practices have varied across organizations, managers, and theorists throughout history. Factors such as industry, available resources, and goals influenced these variations.
• The four facets of management practice (External Environment, Technology, Labor Force, and Management Thought) could influence, and be influenced by, management practices.
• The "Right Work, Done Well!" principle has been a prevalent theme in management, but its specific interpretation and methods of implementation have changed over time.
• The Gilbreths were pioneers in the field of management, focusing on improving efficiency and productivity through their work model, later formalized by Lillian Gilbreth in her Ph.D. thesis.
• Quantitative methods, particularly in the form of graphical illustrations of time elapsed in tasks, became increasingly used in production operations and operations research in the mid-20th century.
• Japanese businesses, influenced by American experts like W. Edwards Deming and Joseph Juran, adopted and further developed quantitative methods like statistical quality control, leading to significant progress in their manufacturing processes.

Max Weber's Bureaucratic Management

• Weber's Bureaucratic Management model emphasized formal rules, defined roles, impersonality, and career orientation.
• Weber's model was presented as definitive and not flexible, with strict adherence as essential for organizational effectiveness.
• Critics argue that Weber's model can be inflexible and create rigid organizations but acknowledge the value of its underlying principles, such as clear job responsibilities and formal control systems.

Human Relations Management

• While early management models considered workers, the Gilbreths, and specifically Lilian Gilbreth, emphasized developing workers' potential to maximize their skills and wages.
• Large corporations in the early 1900s created "employee welfare departments" to counter union influence and provide a positive work environment.
• The Hawthorne Studies, conducted by Elton Mayo and his colleagues, revealed the importance of employee relationships and social interaction on productivity.
• The Hawthorne Studies highlighted the need for managers to understand human behavior and develop skills in communication, leadership, and motivation.
• The studies also revealed the "Hawthorne Effect," where subjects' awareness of being observed influenced their behavior.

Mary Parker Follett's Management Philosophy

• Mary Parker Follett challenged hierarchical models of authority and control, advocating for a shared sense of responsibility for organizational outcomes.
• Follett believed that leaders should define the organization's purpose and encourage employees' buy-in, creating a collective focus on shared goals.
• Follett emphasized the power of group dynamics and collaboration over individual leadership power, aiming to enhance both organizational effectiveness and societal well-being.

Post WWII Developments in Management

• Government initiatives like the National Labor Relations Act and the formation of the CIO in the 1930s strengthened labor's collective bargaining power.
• Abraham Maslow's Hierarchy of Needs, introduced in the 1940s, emphasized the importance of meeting employees' psychological needs for motivation and self-actualization.
• Job enlargement, combining multiple tasks to make work more interesting, became a popular approach in organizations like IBM.
• The emphasis on employee involvement in decision-making led to decentralization and the creation of "flatter" organizational structures, as seen in companies like Sears, Roebuck and Company.
• Herbert Simon's "Bounded Rationality" theory challenged the idea of managers as rational actors. Simon argued managers have limited information processing abilities and are susceptible to biases and emotional influences.
• The uncertainties of the future make it impossible for managers to make "perfect" decisions.