Chapter 2 The Evolution of Management PDF

Because learning changes everything. ® Chapter 2 The Evolution of Management Access the text alternative for slide images. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hil...

Because learning changes everything. ® Chapter 2 The Evolution of Management Access the text alternative for slide images. © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives LO 1 Describe the origins of management practice and its early concepts and influences. LO 2 Summarize five classical approaches to management. LO 3 Discuss four contemporary approaches to management. LO 4 Identify modern contributors who have shaped management thought and practice. © McGraw Hill LLC 2  Origins of Management 1 Origins The field of management as a formal area of study is relatively new; however, evidence of formalized management practices have been found dating back to 5000 BCE. The Industrial Revolution brought a more structured approach to work. © McGraw Hill LLC pieceofmind/Shutterstock 3  Origins of Management 2 Early Management Around 4000 BCE, the Egyptians used planning, organizing, leading, and controlling to build their great pyramids. As early as 1100 BCE, the Chinese applied managerial concepts of delegation, cooperation, efficiency, organization, and control. In 500 BCE, Sun Tzu discussed the importance of planning and leading in his book The Art of War. © McGraw Hill LLC 4  Origins of Management 3 Early Management continued Around 400 to 350 BCE, the Greeks recognized management as a separate art and advocated a scientific approach to work. Around 1436, the Venetians standardized production with an assembly and inventory system. In 1776, Adam Smith discussed control and the principle of specialization for manufacturing workers. Emergence of economies of scale drove managers to strive for further growth. © McGraw Hill LLC 5  Exhibit 2.1 The Evolution of Management Thought Access the text alternative for slide images. © McGraw Hill LLC 6  Classical Approaches 1 Classical Approaches to Management Classical period extended from the mid-19th century through the early 1950s. ’’ Major approaches that emerged were systematic management, scientific management, bureaucracy, administrative management, and human relations. © McGraw Hill LLC 7  Classical Approaches 2 Systematic Management A classical management approach that attempted to build into operations the specific procedures and processes that would ensure coordination of effort to achieve established goals and plans. Emphasized internal operations and efficiency to meet demand brought on by the Industrial Revolution. © McGraw Hill LLC 8  Classical Approaches 3 Scientific Management A classical management approach that applied scientific methods to analyze and determine the “one best way” to complete production tasks. Introduced by Frederick Taylor. © McGraw Hill LLC Bettmann/Getty Images 9  Classical Approaches 4 Taylor’s Four Principles of Scientific Management 1. Management should develop a precise, scientific approach for each element of each job. 2. Management should scientifically select and place each worker so the right person has the right job. 3. Management should cooperate with workers to ensure that jobs match plans and principles. 4. Management should ensure an appropriate division of work and responsibility. © McGraw Hill LLC 10  Classical Approaches 5 Henry L. Gantt Worked with and became a protégé of Frederick Taylor’s. He expanded on the piece-rate system by suggesting that frontline supervisors should receive a bonus for each of their workers who completed their assigned daily tasks. Also known for creating the Gantt chart, which helps employees and managers plan projects by task and time to complete those tasks. © McGraw Hill LLC 11  Exhibit 2.2 Using a Gantt Chart for a Team Research Project at School 1 Step Task Assigned Accomplish Accomplish Accomplish Accomplish Accomplish to Task Task Task Task Task August September October November December 1 Review assignment. All team August 28 members. 2 Meet as group to All team September 5 discuss and identify members. areas for clarification. 3 Identify team leader. All team September 8 members. 4 Meet with professor Team September 12 to clarify objectives leader. of assignment. 5 Meet as group to Team September 18 divide leader and responsibilities. members. 6 Write sections 1 to 3. Member B. October 31 7 Write sections 4 to 6. Member C. October 31 8 Write introduction Member D. October 31 and conclusion and type bibliography. © McGraw Hill LLC 12  Exhibit 2.2 Using a Gantt Chart for a Team Research Project at School 2 Step Task Assigned Accomplish Accomplish Accomplish Accomplish Accomplish to Task Task Task Task Task 9 Edit entire paper. Team November 15 leader. 10 Prepare PowerPoint Member E. November 20 slides for presentation. 11 Practice/rehearse Team November 22 presentation. leader and members. 12 Submit completed Team December 1 paper and deliver leader and presentation. members. © McGraw Hill LLC 13  Classical Approaches 6 Frank and Lillian Gilbreth Used “motion studies” to identify and remove wasteful movements so workers could be more efficient and productive. Lillian Gilbreth focused her research and analysis on the human side of management. This “effort-versus-efficiency” research championed the human over the technical. © McGraw Hill LLC Bygone Collection/Alamy Stock Photo 14  Applying Scientific Management The fifteen millionth Ford Model T rolls off the assembly line in 1927. Henry Ford revolutionized automobile manufacturing by applying the principles of scientific management. © McGraw Hill LLC Keystone/Getty Images 15  Classical Approaches 7 Bureaucracy Max Weber proposed standardized bureaucratic structures as the ideal model for management. Emphasizes a structured, formal network of relationships among specialized positions in the organization. Can be efficient and productive; but not appropriate for every organization. German sociologist Max Weber believed that a bureaucracy approach would make management more efficient and consistent. © McGraw Hill LLC Cci/Shutterstock 16  Exhibit 2.4 Characteristics of an Effective Bureaucracy DIVISION OF LABOR Tasks, assignments, and authority are clearly specified. AUTHORITY A chain of command or hierarchy is well established. QUALIFICATIONS Employees are selected and promoted based on merit. OWNERSHIP Managers, not owners, should run the organization. RULES Impersonal rules should be applied consistently and fairly. © McGraw Hill LLC 17  Classical Approaches 8 Administrative Management Henri Fayol advocated the administrative management framework that attempted to identify major principles and functions that managers could use to achieve superior organizational performance. Identified five functions and 14 principles of management: Five functions are planning, organizing, commanding, coordinating, and controlling. © McGraw Hill LLC 18  Exhibit 2.5 Fayol’s 14 Principles of Management 1. Division of work—divide work into 8. Centralization—determine the relative specialized tasks and assign importance of superior and responsibilities to specific individuals. subordinate roles. 2. Authority—delegate authority along 9. Scalar chain—keep communications with responsibility. within the chain of command. 3. Discipline—make expectations clear 10. Order—order jobs and material so and punish violations. they support the organization’s 4. Unity of command—each employee direction. should be assigned to only one 11. Equity—fair discipline and order supervisor. enhance employee commitment. 5. Unity of direction—employees’ efforts 12. Stability and tenure of personnel— should be focused on achieving promote employee loyalty and organizational objectives. longevity. 6. Subordination of individual interest to 13. Initiative-–encourage employees to act the general interest—the general on their own in support of the interest must predominate. organization’s direction. 7. Remuneration—systematically reward 14. Esprit de corps—promote a unity of efforts that support the organization’s interests between employees and direction. management. © McGraw Hill LLC 19  Classical Approaches 9 Administrative Management continued Other contributors to administrative management: Chester Barnard’s The Functions of the Executive outlined the role of the senior executive: formulating the purpose of the organization, hiring key individuals, and maintaining organizational communications. Mary Parker Follett’s Dynamic Administration emphasized the continually changing situations that managers face. Her two key contributions: 1. Notion that managers desire flexibility. 2. Differences between motivating groups and individuals. © McGraw Hill LLC 20  Classical Approaches 10 Human Relations A classical management approach that attempted to understand and explain how human psychological and social processes interact with the formal aspects of the work situation to influence performance. First major approach to emphasize informal work relationships and worker satisfaction. © McGraw Hill LLC 21  Classical Approaches 11 Hawthorne Studies Series of experiments conducted from 1924 to 1932 at Western Electric Company factory in Chicago. Hawthorne effect refers to people’s reactions to being observed or studied, resulting in superficial rather than meaningful changes in behavior. Researchers concluded that productivity and employee behavior were influenced by the informal work group. © McGraw Hill LLC 22  Hawthorne Effect Employees working at a Western Electric plant circa 1930. Courtesy of Western Electric from the Historical Archive. © McGraw Hill LLC FPG/Hulton Archive/Getty Images 23  Classical Approaches 12 Human Relations continued Abraham Maslow suggested that humans have five levels of needs and are motivated to satisfy the lowest level need that is unmet. Self-actualization (personal fulfillment) is the most advanced need. Managers can achieve organizational goals by encouraging behaviors that satisfy people’s needs and organizational goals simultaneously. Physiological → safety → social → esteem → self-actualization © McGraw Hill LLC 24  Contemporary Approaches 1 Contemporary Approaches to Management Includes sociotechnical systems theory, quantitative management, organizational behavior, and systems theory. Emerged after World War II. © McGraw Hill LLC 25  Contemporary Approaches 2 Sociotechnical Systems Theory An approach to job design that attempts to redesign tasks to optimize operation of a new technology while preserving employees’ interpersonal relationships and other human aspects of the work. Promoted use of teamwork and semiautonomous work groups. Research was precursor to total quality management (T Q M) movement. © McGraw Hill LLC 26  Contemporary Approaches 3 Quantitative Management An approach that emphasizes application of quantitative analysis to managerial decisions and problems. Helps managers make decisions by developing formal mathematical models of their problems. Big Data is one aspect. Techniques used as a supplement or tool in decision-making process. © McGraw Hill LLC 27  Contemporary Approaches 4 Organizational Behavior An approach that studies and identifies management activities that promote employee effectiveness by examining the complex and dynamic nature of individual, group, and organizational processes. Draws from variety of disciplines, including psychology and sociology, to explain people’s behavior as they do their jobs. Theory X and Theory Y. © McGraw Hill LLC 28  Contemporary Approaches 5 Systems Theory A theory stating that an organization is a managed system that changes inputs into outputs. An organization is one system in a series of interdependent subsystems. Example: Southwest Airlines is a subsystem of the airline industry, and the flight crews are a subsystem of Southwest. © McGraw Hill LLC 29 Exhibit 2.6 Open-System Perspective of an Organization Access the text alternative for slide images. © McGraw Hill LLC 30  Contemporary Approaches 6 Contingency Perspective Proposes that the managerial strategies, structures, and processes that result in high performance depend on the characteristics, or important contingencies, or the situation in which they are applied. Builds on systems theory ideas. There is no “one best way” to manage and organize. Different situational and personal characteristics are called contingencies. © McGraw Hill LLC 31  Modern Contributors 1 Peter Drucker Jack Welch Emphasized need for Former CEO of General organizations to set clear Electric. objectives. Mastered “all of the critical Popularized concepts aspects of leadership: such as: MBO, people, process, strategy decentralization, humans and structure.” as assets and knowledge workers. © McGraw Hill LLC 32  Modern Contributors 2 Michael Porter Sheryl Sandberg Competitive strategy Wrote Lean In: Women, expert. Work, and the Will to Published over 100 Lead. articles and at least 20 Encourages women to be books on the subject and more proactive in seeking related topics. challenges at work, taking risks, and pursuing difficult goals. © McGraw Hill LLC 33  Modern Contributors 3 Dr. Rohini Anand Martin Davidson A thought leader in Professor at University of diversity, equity, and Virginia’s Darden School inclusion management. of Business. Her book, Leading Global Teaches, conducts Diversity, Equity, and research, and consults Inclusion: A Guide for with global leaders to help Systemic Change in them use diversity Multinational strategically to drive high Organizations, discusses performance. tactics for advancing DEI initiatives. © McGraw Hill LLC 34  Modern Contributors 4 W. Chan Kim and Renée Mauborgne Professors of strategy at INSEAD. Wrote Blue Ocean Strategy, describing how to succeed by tapping entirely new markets with room to grow. Kim and Mauborgne’s Blue Ocean Strategy offers a systematic approach to reduce competition. The authors advise about how to create uncontested market spaces. Access the text alternative for slide images. © McGraw Hill LLC https://www.blueoceanstrategy.com 35  An Eye on the Future 1 Adapting to Change New technologies and flexible work arrangements. New opportunities and new demands. Changes in employee skills and global competition. Sheryl Sandberg’s book Lean In: Women, Work and the Will to Lead encourages women to be more proactive in seeking challenges at work, taking risks, and pursuing difficult goals. © McGraw Hill LLC THIBAULT CAMUS/POOL/EPA-EFE/REX/Shutterstock 36  An Eye on the Future 2 Implications for You and Your Career Be ready for challenges. Ask questions about the future. Know your responsibilities and be prepared to meet them. © McGraw Hill LLC 37  Group Challenge Management Approaches You are the office manager of a large law firm. Several of your associates have complained about an employee, Sara, coming to work late, taking extended breaks and making personal calls. Sara claims she always gets her work done in a timely fashion and that’s all that should matter. Choose a management theory (for example, scientific management, human relations, systems, contingency). Use this theory to develop a response to the situation. What are the strengths and weaknesses of this response? © McGraw Hill LLC 38  Chapter Review Origins of management. Egyptians, Chinese, Sun Tzu, Ancient Greeks, Venetians. Five classical approaches to management. Systematic management, scientific management, bureaucracy, administrative management, human relations. Four contemporary approaches to management. Sociotechnical systems theory, quantitative management, organizational behavior, systems theory. Modern contributors to management. Drucker, Welch, Porter, Sandberg, Anand, Davidson, Kim/Mauborgne. © McGraw Hill LLC 39  Because learning changes everything. ® www.mheducation.com © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.