Management - Science, Theory, and Practice PDF

Management Science, Theory, and Practice Prof. Rhea Rowena U. Apolinario, UP SLIS Management in Ancient History — Origins of many techniques employed today can be traced back to ancient times and civilizations — 5000 BCE ◦ Egyptian – construction of one pyramid was...

Management Science, Theory, and Practice Prof. Rhea Rowena U. Apolinario, UP SLIS Management in Ancient History — Origins of many techniques employed today can be traced back to ancient times and civilizations — 5000 BCE ◦ Egyptian – construction of one pyramid was accomplished by 100,000 people working for 20 years. — 3000 BCE ◦ Sumerians kept records on clay tablets; records were about the management practices of the priests of Ur. ◦ Early Babylonia – Codes of Akkadian and Hammurabi (there are laws on strict control on business enterprises) ◦ Hebrews - Old Testament , there was mention in hierarchy and the importance of delegation – Exodus 18:25-26: Chose able men out of Israel and made them heads over the people, rulers of thousands, rulers of hundreds, rulers of fifties, and rulers of tens. And they judged the people at all seasons; the hard cases they brought unto Moses, but every small matter they judged themselves. ◦ China had concepts of organization, functions, cooperation, procedures for efficiency and various control techniques. — 2250 BCE ◦ Chinese dynasties already had staff principle, later perfected by military organizations — 2000 BCE ◦ The principle of decentralized control in the states of Egypt, later on, the Pharaoh established central control over all — 218 BCE ◦ Hannibal’s crossing of the Alps with his Carthaginian troops and equipment was a remarkable organizational feat ◦ Qin Shi Huang Di – 1st emperor of China, was able to organize hundreds of thousands of slaves to create his burial complex at Xian and to connect portion of the Great Wall The Industrial Age — as society became less agrarian à increasing interest in management — Industrial Revolution (end of the 19th c and beginning of the 20th c.), produced the factory system that brought workers into a central location and into contact with other workers  Major Schools of Management Thought Learning Organizations Contingency Management Systems Theory Decision Quantitative Approaches Management Operations Science Theory Research Humanistic Schools Human Relations Movement Self-actualizing Movement Classical Scientific Bureaucratic Administrative Management Organizations Principles Schools 1880 1910 1930 1940 1950 1970 1990 2010 Classical Perspectives — Earliest management schools — Arose in response to the growth in size and number of organizations — Each sought to make organizations more efficient by applying systematic, more scientific approach to management  Classical Schools of Management Bureaucratic Administrative Scientific Organizations Principles Management Max Weber Henri Fayol Frederick Taylor Frank & Lillian Gilbreth Henry Gantt — Scientific Management Approach ◦ Frederick W.Taylor (1856-1915) – American, father of Scientific Management; manager of steelworks company in Philadelphia, Pennsylvania – Basic assumption: workers are primarily economically motivated and that they will give their best efforts if they are rewarded financially – Efficiency is the central theme – Emphasis is on maximum output and eliminating waste and inefficiency; for him, workers are naturally lazy, fostered by poor management – Four (4) underlying principles of the Scientific Management – The development of a true science of management – The scientific selection of the individual to fill each job – The scientific education and development of each employee, so that he/she would be able to do his or her job properly – Cooperation between management and workers ◦ Frank (1868-1942, engineer) and Lillian Gilbreth (1878-1972, held a doctorate in Psychology) – Contributed to the growth of the scientific method – Constantly searched for “the one best way” – Concerned with the human aspects of managing – Expanded the concepts of time and motion studies (i.e. bricklaying, from 18.5 number of motion to just 4) – Famous for being the efficiency experts in “Cheaper by the Dozen” – a book written by two of their children ◦ Henry L. Gantt (1861-1919) – Developed the task and bonus system, similar to Taylor’s awards incentive – If rates were exceeded, bonuses were paid – Gantt chart is widely used in the production and work schedules; a simple and effective way to allow managers to schedule work forces across a series of tasks — Bureaucratic School ◦ Was taking form in Europe at the time that Scientific Management was developing in the US ◦ Bureaucracies work well under many conditions in stable organization in stable environments ◦ Max Weber (1864-1920), German sociologist – First to identify a theory of the structure of authority in organizations – More concerned with the structure of the organization than with the individual – Characterized a bureaucratic organization as an ideal type of organization, in which: – Labor is divided with a clear indication of authority and responsibility – The principle of hierarchy exists – Personnel are selected and promoted based on qualifications – Rules are written down and impersonally and uniformly applied – Promotion into management is only through demonstrated technical competence – Rules and procedures ensure reliable and predictable behavior — Administrative Principles (Classical or Generalist Movement) ◦ Developed in France concurrently with the scientific management in the US ◦ Sought to establish a conceptual framework, identify principles, and build a theory of management ◦ Henri Fayol (1841-1925) – The father of the administrative principle / modern management; an industrialist – Looked at administration from top to bottom – Concentrated on the roles that managers should perform as planners, organizers, and controllers – Emphasized the need to teach administration at all levels – First to write about the functions of management (i.e., planning, organizing, command, coordination and control) – Devised the 14 Principles of Management – Division of work – clear division of duties; breaking jobs into smaller pieces will result in specialization – Authority – authority that individuals posses should be equal to their responsibility – Discipline – clear rules and complete obedience to behavior in the best interest of the organization – Unity of command – an employee should receive orders from only one superior to avoid confusion and conflict – Unity of direction – one head and one plan to ensure coordinated effort – Subordination of individual interest to the general interest – employees should place the organization’s concerns before their own – Remuneration of personnel – pay should be fair – Centralization – most desirable arrangement within an organization – Scalar chain – each position is part of a vertical chain of authority; communication should move up and down this chain – Order – a right place for everything and everyone in the organization – Equity – equality of treatment; justice should be tempered with kindness – Stability of tenure of personnel – long-term stability for workers is good for an organization – Initiative – incentive rewards must be provided to stimulate production – Esprit de corps – a strong sense of morale and unity The Humanistic Approach — 1930s – management studies began to give attention to the concerns of the individuals in the organization — Main emphasis of study: individual and informal group — Primary concern: integrating people into the work environment  The Humanistic Approach Human Relations Self-actualizing Movement Movement — Human Relations Movement ◦ Focused on the behavior of the individual and his quality of life in the organization – needs, aspiration, motivation ◦ Major assumption: if management can make employees happy, result is maximum performance ◦ Chester Barnard (1886-1961) – Famous for his classic book “The Functions of the Executive” (1938) – Dwelled on the contribution-satisfaction equilibrium – One of the first to recognize that organizations must not only be effective, but efficient – First to introduce the issue of the social responsibility of management, including fair wages, security, and providing an atmosphere conducive to work ◦ Mary Parker Follet (1868-1933) – Recognized the interdependencies among the individual, work, and environment – Emphasized worker participation and importance of shared goals – Advocated constructive conflict – making conflict work for the organization ◦ Elton Mayo (1880-1949) – conducted the Hawthorne studies with F.J. Roethlisberger, and a group of industrial psychologists at the Electric Western Hawthorne Plant in Chicago, Illinois – Hawthorne Studies – Demonstrated the importance of the human side of an organization – Designed to find a way to increase efficiency and effectiveness by varying the levels of illumination for workers in the organization – When illumination was increased, so was productivity – When illumination was decreased, same increase in productivity – When nothing was changed in the illumination, same productivity – Found out that the explanation to the increased productivity was due to the changes in the way the workers felt about themselves – By lavishing the employees attention, the experiment made them feel important – Demonstrated that: – Workers are more motivated by social rewards and sanctions than by economic incentives – Workers’ actions are influenced by the group – Whenever formal organizations exist, both formal and informal norms exist — Self-actualizing Movement ◦ Emphasis is on designing jobs that would satisfy the higher-level needs of the workers and utilize more of their potential ◦ Abraham Maslow – Maslow’s Hierarchy of Needs or Needs Theory Self- Actualization Esteem Needs Social or Affiliation Needs Safety and Security Needs  ◦ Douglas McGregor (1906-1964) – Put forth two influential sets of assumptions – Theory X – traditional, autocratic, managerial perception of workers – Theory Y – presents much more positive picture of people Theory X Theory Y Average human beings have an inherent dislike The expenditure of physical and mental effort of work and will avoid it if they can in work is as natural as play or rest People must be coerced, controlled, directed, Individuals will exercise self-direction and self- and threatened with punishment to get them control in the service of objectives to which to work they are committed People prefer to be directed, wish to avoid People learn, under proper conditions, not responsibility, have relatively little ambition, only to accept but also to seek responsibility and, above all, want security People are self-centered and do not like Imagination, ingenuity, and creativity are widely change distributed among workers ◦ William Ouchi – Wrote the best-selling book, Theory Z, showed how selected Japanese management practices may be adapted in the United States – 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 – Tends to promote stable employment, high productivity, and high employee morale and satisfaction. ◦ Peter Drucker (1919-2005) – Introduced in the 1950s, Management By Objectives – advocates substituting a more participative approach for that of authoritarianism; a process of agreeing upon objectives within an organization so that management and employees agree to the objectives and understand what they are in the organization. – Other proponents were: – Chris Argyris - suggested that organizational structure can curtail self-fulfillment; single-loop and double-loop learning; maturity/immaturity continuum – Rensis Likert, Warren Bennis, Robert Blake, Jane Mouton  The Quantitative Approach — After WW2 , there was a movement in the US and other countries to develop better and more sophisticated tools to use in management — Since during the WW2, scientists, mathematicians and statisticians were extensively used to solve problems. — This management approach makes use of sophisticated mathematical, statistical, and economic methods to improve managerial decision making — Subfields include: management science, decision theory, and operations research.  Quantitative Approach Management Decision Operations Science Theory Research — Management Science ◦ apply scientific analysis to managerial problems, improve the manager’s decision-making ability, high regard for economic effectiveness criteria, rely on mathematical models, and the use of computers — Decision Theory ◦ Concerned with the study of rational decision-making procedures and the way managers reach to a decision ◦ use game theory, simulation, and linear programming in decision making — Operations Research ◦ Applied form of management science that helps organizations develop techniques to produce their products and services more efficiently ◦ Uses techniques such as cost-benefit analyses, linear programming, systems analysis, simulation, Monte Carlo techniques, and game theory ◦ Managing information for timely decisions making has become a major focus on some researches. ◦ – One result is that of MIS (Management Information Systems) was developed as a sophisticated technique for systematically gathering relevant information for decision makers. The Systems Approach — A widely accepted theoretical bases for modern management — Integrates knowledge from the biological, physical, and behavioral sciences — Organizations are regarded as systems that function as a whole — Envisions organizations as porous entities that are greatly affected by the outside environment ◦ Ludwig Von Bertalanfy (1901-1972) – Wrote about the systems theory of an organism – Defined the system as “a set of elements standing in interrelation (interaction) among themselves with the environment” – Other schools of management regarded the environment as a closed system Systems Approach to Management Environment Inputs The Organization Outputs Feedback The Contingency Approach — 1970s – became one of the most influential thinking about management — Believes that there is no one best way to manage — Takes the situational approach, considers the circumstances of each situation and then decides which response has the greatest change of success — Posits that: ◦ No best management technique ◦ No best way to manage ◦ No technique or managerial principle is effective all the time ◦ What works best? It all depends on the situation ◦ Each organization is unique — Challenge of this approach: perceiving organizational situations as they actually exist and choosing the best management tactic to deal with the situation — No silver bullet, no one-size-fits all approach; tells the manager to look at the organization, its goals, objectives , technology it uses, the people who work there, the outside environment, and other factors  The Learning Organization — 1990s - came into being — Peter Senge - Put forth this approach to help organizations meet the challenges of a rapidly changing environment — A learning organization is one in which all employees are constantly learning — Organization maintains open communication, decentralized decision making, and a flattened organization; an organization that overcomes limitations, understands the pressures against it, and seizes the opportunities when they present themselves — Basic principles are: ◦ Personal mastery – with people identifying what is important in the process ◦ Mental models – with the organization continuously challenging members in order to improve their mental models ◦ Shared vision – requiring an imagining of what the organization should be ◦ Team learning – through cooperation, communication, and compatibility ◦ Systems thinking – recognizing the organization as a whole ` — This approach seems to be a good fit as more organizations are making the shift from the command-and-control organization, the organization of departments and divisions, to the information-based organization, the organization of knowledge specialists — References ◦ Apolinario, R.R.U. LIS 151 Presentations. ◦ Evans, G. E. & Ward, P. L. (2007). Management Basics for Information Professionals, 2nd ed. New York, NY: Neal Schuman Pub. ◦ Robbins, S.P. (1994). Management, 4th ed. Englewood Cliff, NJ: Prentice Hall. ◦ Stueart, R. D. & Moran, B. B. (2007). Library and Information Center Management, 7th ed. Santa Barbara, CA: Libraries Unlimited. ◦ Weihrich, H. & Koontz, H. (2005). Management: A Global Perspective, 11th ed. Boston, MA: McGraw Hill.