Management Perspective and Its History.ppt

Management Module 1.1 Traditional and Contemporary Management Perspective/ Management History  The Historical Context of Management D Greeks C Babylonians...

Management Module 1.1 Traditional and Contemporary Management Perspective/ Management History  The Historical Context of Management D Greeks C Babylonians G Venetians B Egyptians E Romans A Sumerians F Chinese 3000 B.C. 2500 B.C. 2000 B.C. 1500 B.C. 1000 B.C. 500 B.C. A.D.500 A.D.1000 A.D.1500 A Used written rules and regulations for governance E Used organized structure for communication and control B Used management practices to construct pyramids F Used extensive organization structure for government agencies and the arts C Used extensive set of laws and policies for governance G Used organization design and planning concepts to D Used different governing systems for cities and state control the seas Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1-2 Adam Smith – Scottish philosopher Father of Modern economics / concept of free market / famous for his book : The Wealth of Nations in 1776 (let the market dictate for itself) Robert Owen (1771–1858) – Welsh industrialist and social reformist Recognized the importance of human resources and the welfare of workers. He believed working people deserved kinder treatment. He thought if all people had a better quality of life, it would create a better, happier society Charles Babbage (1792–1871) – English mathematician and mechanical engineer. Father of Computing / Focused on creating production efficiencies through division of labor, and application of mathematics to management problems. Industrial Revolution (steam engine, the age of science and mass production, and the rise of digital technology, and currently, automation/ IoT /cloud computing, / AI / 3D printing / big data –Substituted machine power for human labor Copyright © 2012 Pearson Education Exhibit MH-1: Major Approaches to Management Copyright © 2012 Pearson Education MH-4 Classical Management Perspective - workers only have physical and economic needs Scientific Management – Concerned with improving the performance of individual workers (i.e., efficiency). – Grew out of the industrial revolution’s labor shortage. General Administrative Management – Focuses on managing the total organization rather than individuals. 1–5 MH-5  Steps in Scientific Management Frederick Winslow Taylor – American mechanical engineer –Taylor is the Father Using scientific of Scientific methods Management to define the “one best way” for a job to be done; reduction of waste/increase production and efficiency; objective is to improve labor productivity Putting the right person on the job with the correct tools and equipment Having a standardized method of doing the job Providing an economic incentive to the worker 1–6 MH-6 Frank Gilbreth and Lillian Gilbreth - American engineers - Advocate of Scientific Management & Pioneer of Motion Study and Analysis /Time & Motion Study ECRS/ ASME Symbols/ 5S -increase productivity while reducing fatigue thus increasing profit -Both developed techniques and strategies for eliminating inefficiency. - Frank reduced bricklaying movements, resulting in increased output of 200%. Copyright © 2012 Pearson Education  General Administrative Theory Henri Fayol (1845–1925) – French mining engineer Identified the specific management functions of planning, organizing, leading, and controlling. Max Weber (1864–1920) – German sociologist His Theory of Bureaucracy is based on a rational set of guidelines for structuring organizations. -discourage creativity and collaboration in the workplace, and oppose flexibility and risk. -stressed strict rules and a firm distribution of power. © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Exhibit MH-3 Copyright © 2012 Pearson Education  Unity of Command – each employee should have only 1 boss, from whom one get orders and is accountable to. Authority – means the right to give orders/command and receive obedience from subordinates. Responsibility is when a person is accountable for the duties assigned to him. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall MH-10 Exhibit MH-1: Major Approaches to Management Copyright © 2012 Pearson Education MH-11  The Quantitative Management Perspective Quantitative Management aka Management Science – Helped Allied forces manage logistical problems during World War II. Focuses on decision making, economic effectiveness, mathematical models, and use of computers to solve quantitative problems such as Linear Programming, Simulation, Queuing Theory Operations Management is the practical application of management science to efficiently manage the production and distribution of products and services, e.g., Forecasting 1–12. MH-12 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Exhibit MH-1: Major Approaches to Management Copyright © 2012 Pearson Education MH-13 Behavioral Management Perspective or Human Relations Movement – Proposed that workers respond primarily to the social context of work, including social conditioning, group norms, and interpersonal dynamics. – employees are motivated not only by financial reward but also by a range of social factors (e.g. praise, a sense of belonging, feelings of achievement and pride in one's work). – Assumed that the manager’s concern for workers would lead to increased worker satisfaction and improved worker performance. – people are the most important asset of an organization © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–14 MH-14  Hugo Munsterberg – German American Psychologist 1863-1916 In 1913 he published his most influential work, Psychology and Industrial Efficiency, a book that was popular with American managers seeking to increase efficiency. -matching worker abilities to job requirements. -He believed that psychology possessed the tools to create that match by determining the psychological traits required for any job and using mental tests to identify suitable workers. -Source : https://www.encyclopedia.com/people/medicine/psychology- and-psychiatry-biographies/hugo-munsterberg Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall MH-15  1932) Elton Mayo and Fritz Roethlisberger Conducted at Hawthorne Plant of Western Electric in Illinois The Hawthorne studies showed that people's work performance is dependent on social issues and job satisfaction, and that monetary incentives and good working conditions are generally less important in improving employee productivity than meeting individuals' need and desire to belong to a group Mayo Management theory states that employees are motivated far more by relational factors such as attention and camaraderie than by monetary rewards or environmental factors such as lighting, humidity, etc. 1–16. MH-16 The Hawthorne Studies (1927–1932) Elton Mayo’s (Harvard Professor) work was a turning point in the development of management thought. His work challenged the basic postulates of the classical approach. His studies revealed the over-whelming significance of human and social factors in industry. He is rightly called the 'Founder of the Human Relations Approach' to management. – Illumination study Lighting adjustments affected both control and experimental groups of employees. – Group study Incentive plan caused workers to establish. MH-17 informal levels of individual output.  https://ph.images.search.yahoo.com/search/images?p=hawthorne+studies&fr=mcafee&type=E210PH739G0&imgurl=http %3A%2F%2Fwww.library.hbs.edu%2Fhc%2Fhawthorne%2Fimages%2Fbig%2Fwehe_073.jpg#id=132&iurl=https%3A%2F %2Fimage.slidesharecdn.com%2Fhawthorneexperiments-111211160038-phpapp02%2F95%2Fhawthorne-experiments-5- 728.jpg%3Fcb%3D1323621245&action=click Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall MH-18  Behavioral Management Theorists Abraham Maslow - American psychologist with Jewish parents (April 1, 1908 – June 8, 1970) – advanced a theory that employees are motivated by a hierarchy of needs that they seek to satisfy. – What a man can be, he must be. This need we call self-actualization. MH-19 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license 1–19 distributed with a certain product or service or otherwise on a password-protected website for classroom use.  Maslow’s Hierarchy of Needs Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall MH-20 Douglas McGregor – MIT professor and author of the highly influential book "The Human Side of Enterprise” Proposed Theory X and Theory Y concepts of managerial beliefs about people and work. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall MH-21 Theory X 1.People do not like work and try to avoid it. Assumption 2.People do not like work, so managers have to control, direct, s (Douglas coerce, and threaten employees to get them to work toward McGregor) organizational goals. 3.People prefer to be directed, to avoid responsibility, and to want security; they have little ambition. Theory Y 1.People do not naturally dislike work; work is a natural part of Assumption their lives. s 2.People are internally motivated to reach objectives to which they are committed. 3.People are committed to goals to the degree that they receive personal rewards when they reach their objectives. 4.People will both seek and accept responsibility under favorable conditions. 5.People have the capacity to be innovative in solving organizational problems. 6.People are bright, but under most organizational conditions their potential is underutilized. © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a 1–22. license distributed with a certain product or service or otherwise on a password-protected website for classroom use. MH-22 Henry Mintzberg - Canadian academic and author on business and management, born on September https://www.youtube.com/watch?v=K7My9mZUUVs 2, 1939 Key Management Roles Interpersonal Informational Decisional Roles Roles Roles Figurehead Monitor Entrepreneur Leader Disseminator Disturbance Liaison Spokesperson handler Resource Allocator https://www.youtube.com/watch?v=bJe4YWdGzzM Negotiator 1-23 Dr. William Ouchi Born: 1943, Honolulu, Hawaii, United States -popularized during the Asian economic boom of the 1980s. - 'Theory Z’ - Japanese Management Style - focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. - The secret to Japanese success, according to Ouchi, is not technology, but a special way of managing people. "This is a managing style that focuses on a strong company philosophy, a distinct corporate culture, long-range staff development, and consensus decision-making" (Ouchi, 1981). Ouchi shows that the results show lower turn-over, increased job commitment, and dramatically higher productivity. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall MH-24 Exhibit MH-1: Major Approaches to Management Copyright © 2012 Pearson Education MH-25  Organizational Behavior (OB) https://www.youtube.com/watch?v=MnvWxZhsvKA https://www.youtube.com/watch?v=vRiOq9BdpaE - Is the study of how humans, individuals and groups, interact within an organization and how these interactions affect an organization’s performance toward its goals. - The field examines the impact of various factors on behavior Focuses within an on behavioral organization. perspectives. – Draws on psychology, sociology, anthropology, economics, and medicine. Important OB research topics: – Job satisfaction and job stress – Motivation and leadership – Group dynamics and organizational politics – Interpersonal conflict – The structure and design of organizations © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a 1–26 license distributed with a certain product or service or otherwise on a password-protected website for classroom use. MH-26 Exhibit MH-1: Major Approaches to Management Copyright © 2012 Pearson Education MH-27  The Systems Approach & Its Concepts first initiated by Ludwing Von Bertalanfty Systems approach is a management perspective which advocates that any business problem should be seen as a whole which is made up of a hierarchy of sub-systems. System – a collection of elements that are inter- related and interdependent, arranged in a manner that produces a unified whole. Subsystems A system within another system that is important due to its interdependence on other sub-systems within the organization. It sees all departments and subsystems as contributing factors for the overall organization. Overall success of organizations is seen as a whole and not success of one department overCopyright the other. © 2012 Pearson Education  Systems Perspective Concepts (cont’d) Synergy (1+1 = 3) – Subsystems are more successful working together in than working alone. – The whole system (subsystems working together as one system) is more productive and efficient than the sum of its parts. Entropy – Is a process in which an organizational system declines due to failing to adjust to change in its environment. – Is avoided through change and renewal. MH-29 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license 1–29 distributed with a certain product or service or otherwise on a password-protected website for classroom use.  Let us take a scenario. If we are facing an issue in a company related to sales and we only see the problem to be solved with the sales department rather than all the departments together we may not be able to solve the problem effectively. Only focusing on sales will lead to more pressure on sales team to increases sales leading to poor customer experience as the sales department will try hard on upselling or cross selling. But if we use systems approach and see the problem of sales at whole level then we might see that the product quality can be an issue or may be there is not enough marketing done for the product or may be the after sales service is not provided leading to drop in sales figures. The company can then focus on overall goals and strategy to make sure that a high quality product or service would be produced with great customer experience. That will help not only help the sales problem but overall uplift the company. Systems approach gives insights into each components' workings and helps see its contribution to the overall system. Source: https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/18238-systems- approach.html Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall MH-30 The Systems Perspective of Organizations Exhibit MH-7 Copyright © 2012 Pearson Education  The Contingency Perspective Contingency Perspective – Suggests each organization is unique. – Appropriate managerial behavior depends (is contingent) on current situation in the organization. - There is no one universally applicable set of management principles (rules) by which to manage organizations. Universal Perspectives – Include classical, behavioral, and quantitative approaches – Attempt to identify “one best way” to manage organizations 1–32 MH-32  The Contingency Perspective Process sometimes called the Situational Approach Problem or Situation Important Contingencies Solution or Action Solution or Action Solution or Action A B C 1-33 © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license 1–33 distributed with a certain product or service or otherwise on a password-protected website for classroom use.  An Integrative Framework of Management Perspectives Systems Approach Contingency Perspective Recognition Recognition of the situational of internal interdependencies nature of management Recognition of Response to particular environmental influences characteristics of situation Classical Behavioral Quantitative Management Management Management Perspectives Perspectives Perspectives Methods for Insights for moti- Techniques for enhancing vating performance improving decision efficiency and and understanding making, resource facilitating planning, individual behavior, allocation, and organizing, and groups and teams, operations controlling and leadership Effective and efficient management 1–34  Contemporary Management Issues and Challenges Globalization of product and service markets An increasingly diverse and globalized workforce An emphasis on ethics and social responsibility The use of quality as the basis for competition The shift to a predominately service-based economy Meeting the challenges of a recovering economy Creating new organizational structures to provide challenging, motivating, and flexible work environments The effects of new information technology on how work is done in organization © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–35  Thank you for Listening © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–36  Management History Module Describe some early management examples Explain the various theories in the classical approach Discuss the development and uses of the behavioral approach Describe the quantitative approach Explain the various theories in the contemporary approach Copyright © 2012 Pearson Education  The Importance of History Why History? – An awareness and understanding of historical developments in management are important. Furthers development of management practices. Avoids mistakes of others in the past. © 2014 Cengage Learning. All rights reserved., in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected 1–38 website for classroom use.  Human Relations View of Management Individual Needs and Motives Social Supervisor Task Context Individual Responses © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–39  The Systems Approach & Its Concepts Closed systems Are not influenced by and do not interact with their environment (all system input and output is internal) Open systems Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments Copyright © 2012 Pearson Education