Chapter 2: The Evolution of Management Thinking PDF

Chapter 2 The Evolution of Management Thinking © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessibl...

Chapter 2 The Evolution of Management Thinking © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Management and Organization ❖ Studying management history helps you understand the impact of social forces on organizations ❖ Factors affect management practices and perspectives ❖ Social forces ❖ Political forces ❖ Economic forces 2 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Forces Influencing Organizations and Management 2.1 Social Forces – aspects of a culture that guide and influence relationship among people. ❖What do people values? ❖What do people need? ❖What are the standards of behavior among people? ❖ These forces shape the social contract, the unwritten, common rules and perceptions about relationships among people and between employees and management © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Forces Influencing Organizations and Management 2.2 Political Forces - influence of political and legal institutions on people & organizations ❖ Political forces include basic assumptions underlying the political system such as ❖the desirability of self-government, ❖property rights, ❖contract rights, ❖justice © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Forces Influencing Organizations and Management 2.3 Economic Forces - forces that affect the availability, production, & distribution of a society’s resources among competing users ❖ The new emerging economy is based largely on ideas, information, and knowledge; supply chains have been revolutionized by digital technology ❖ Management practices and perspectives vary in response to these social, political, and economic forces; during hard times, manager look for ideas to help them cope. © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  OUTLINE 3.0 Classical Perspective 3.1 Scientific Management 3.2 Bureaucratic Organizations 3.3 Administrative Principles © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  3.0 Classical Perspective ❖ The classical perspective emerged during the 19th and 20th centuries ❖ The factory system of the 1800s had challenges: ❖ tooling plants, ❖ organizing managerial structure, ❖ training non-English speaking employees, ❖ scheduling, and resolving strikes ❖ These new problems demanded a new perspective on coordination and control © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  3.0 Classical Perspective ❖ Rational, scientific approach to management – make organizations efficient operating machines ❖ This perspective contains three subfields: - Scientific Management - Bureaucratic Organizations - Administrative Principles © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  3.1 Scientific Management: Taylor (1856-1915) ❖ https://youtu.be/vNfy_AHG-MU ❖ Frederick W. Taylor – known as the father of scientific management ❖ Emphasized scientific changes in management to improve labor productivity ❖ Taylor suggested decisions based on rules of thumb and tradition be replaced with precise work procedures developed after study of the situation © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  3.1 Scientific Management: Taylor 1856-1915 General Approach ❖ Developed standard method for performing each job. ❖ Selected workers with appropriate abilities for each job. ❖ Trained workers in standard method. ❖ Supported workers by planning work and eliminating interruptions. ❖ Provided wage incentives to workers for increased output. © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  3.1 Scientific Management Contributions ❖ Demonstrated the importance of compensation for performance. ❖ Initiated the careful study of tasks and jobs. ❖ Demonstrated the importance of personnel selection and their training. Criticisms ❖ Did not appreciate 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 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  3.2 Bureaucracy Organizations ❖ Max Weber 1864-1920 ❖ Prior to Bureaucracy Organizations ❖ European employees were loyal to a single individual rather than to the organization or its mission ❖ Resources used to realize individual desires rather than organizational goals ❖ Systematic approach –looked at organization as a whole ❖ Max Weber introduced management on an impersonal, rational basis through defined authority and responsibility, formal recordkeeping, and separation of management and ownership © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  3.2 Bureaucracy Organizations ❖ The manager did not depend on personality for successfully giving orders but on the legal power invested in the managerial position ❖ The term bureaucracy has a negative meaning in today’s organization – endless rules and red tape; however, everyone gets equal treatment © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  3.3 Administrative Principles ❖ Contributors: Henri Fayol ❖ Focus: ❖Organization rather than the individual worker ❖Delineated the management functions of planning, organizing, commanding, coordinating, and controlling © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Humanistic Perspective: (i) Early Advocates ❖ Understand human behaviors, needs, and attitudes in the workplace ❖ Mary Parker Follett and Chester Barnard ❖ Contrast to scientific management – importance of people rather than engineering techniques 15 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Humanistic Perspective: (i) Early Advocates ❖ Empowerment: facilitating instead of controlling employees ❖ Informal organization: cliques, informal networks, and social groupings ❖ Acceptance theory of authority: people can choose to follow management orders 16 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Humanistic Perspective: (ii) Human Relations Movement Hawthorne Studies ❖ Started in 1895 ❖ Four experimental & three control groups ❖ Five different tests ❖ Test pointed to factors other than illumination for productivity ❖ 1st Relay Assembly Test Room experiment, was controversial, test lasted 6 years ❖ Interpretation, money not cause of increased output ❖ Factor that increased output is Human Relations © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Humanistic Perspective: (ii) Human Relations Movement ❖ Effective control comes from within the employee ❖ Hawthorne studies were key contributor ❖ Human relations played key variable in increasing performance ❖ Employees perform better when managers treat them positively ❖ Shaped management practice and research 18 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Humanistic Perspective: (iii) Human Resources Perspective ❖ Satisfied workers produce more work ❖ Allow workers to use their full potential ❖ Shifted emphasis to workers’ daily tasks ❖ Combine job design and motivation ❖ Maslow created a hierarchy of needs ❖ McGregor formulated Theory X and Theory Y about workers’ motivation 19 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2.5 Theory X and Theory Y 21 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Humanistic Perspective: Behavioral Sciences Approach ❖ Other strategies based on behavioural science ❖ Matrix organizations ❖ Self-managed teams ❖ Corporate culture ❖ Management by wandering around 22 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Management Science Perspective ❖ Emerged after WW II ❖ Applied mathematics, statistics, and other quantitative techniques to managerial problems Operations Research – mathematical modeling Operations Management – specializes in physical production of goods or services using quantitative techniques to solve manufacturing problems, e.g. forecasting, queuing theory, scheduling, simulation Information Technology – reflected in management information systems, e.g. intranet, extranet, software programs © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Recent Trends: Systems Thinking ❖ The ability to see the distinct elements of a situation as well as the complexities ❖ System: set of interrelated parts that function as a whole to achieve a common purpose ❖ Subsystems: parts of a system that depend on one another ❖ Synergy: the whole is greater than the sum of its parts ❖ Managers must understand subsystem interdependence and synergy 24 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Recent Trends: Contingency View ❖ Every situation is unique ❖ Opposite of universalist view (classical perspective) ❖ Managers must determine what method will work in every new situation ❖ Managers must identify key contingencies for the current situation ❖ Organizational structure should depend upon industry and other variables 25 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Managing New People- Driven Workplace ❖ Bossless workplace ❖ Many don’t work in a regular office ❖ Accountable to the customers and the team ❖ Advantages ❖ Increased flexibility, greater initiative and commitment, better and faster decision making ❖ Disadvantages ❖ Must invest in training and development 26 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Managing New People- Driven Workplace ❖ Engagement: people ❖ are emotionally involved in their jobs and are satisfied with work conditions ❖ contribute enthusiastically to meeting team and organizational goals ❖ feel a sense of belonging and commitment to the organization and its mission 27 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Historical Struggle: Social Business ❖ Social business: using social media technologies for interacting with and facilitating communication and collaboration among employees, customers, and other stakeholders ❖ Social media programs: include company online community pages, wikis, social media sites, video channels, microblogging platforms, and company online platforms 28 © 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.