History and Evolution of Management

Thought  Why Do We Study OB? * To learn about yourself and how to deal with others * You are part of an organization now, and will continue to be a part of various organizations * Organizations are increasingly expecting individuals to be able to work in teams The Importance of Theory and History ( Theory provides a simple conceptual framework ( for organizing knowledge and ( for providing a blueprint for action ( to help guide organizations towards their goals  History and Evolution of Management Thought ( Contributions from past industrialists ( have molded organizational culture and ( managers can benefit from an awareness of these contributions Early Management Pioneers y Adam Smith made significant contributions in the field of economics y He introduced the concept of DIVISION OF LABOUR Robert Owen was one of the first managers to show respect and dignity to workers in his factory  implemented better working conditions,  raised the minimum age for child labor,  reduced working hours, and  supplied meals Charles Babbage applied mathematical principles to find ways to y make the most efficient use of facilities and materials y he also advocated profit-sharing plans  Andrew Ure was one of the world's first professors to teach management principles at Anderson's College in Glasgow * Began around 1900 and continued into the 1930s * Traditional or classical management focuses on efficiency and includes scientific, administrative and bureaucratic management * Scientific management focuses on ways to improve the performance of individual workers * Some of the major contributors are: Frederick W. Taylor The Gilbreths Taylor s four principles  Develop a science for each element of an individual s work  Scientifically select and then train, teach, and develop the worker  Scientific Management  Cooperate with the workers to ensure that all work is done as per principles  Divide work and responsibility equally between management and workers Management takes over all work for which it is better suited than the work * The Gilbreths, a husband and wife team, also helped to find more efficient ways for workers to produce output

Frank Gilbreth made his most important contribution in the field of bricklaying. He changed an 18step process into 5 steps and increased productivity by about 200 percent

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Administrative Management Emphasizes the manager and the functions of management Henri Fayol was the first to identify the four management functionsy Planning y Organizing y Leading, and y Controlling

Fayol s 14 Principles of Management  Division of work  Authority  Discipline  Unity of command  Unity of direction  Subordination of the individual interests to the general interests  Remuneration Max Weber (1864-1920), analyzed bureaucracy as the most logical and rational structure for large organizations * Bureaucracies are founded on legal or rational authority, which is based on law, procedures, rules Bureaucratic Model Efficiency in bureaucracies comes from: - clearly defined and specialized functions - use of legal authority - hierarchical form - written rules and procedures - technically trained bureaucrats - appointment to positions based on technical expertise - promotions based on competence - clearly defined career paths Social Man or Group Influences Theory Mary Parker Follet a social philosopher emphasized on group ethics y to harmonize and coordinate group activities y not only to exercise authority but also to rely on expertise and knowledge of the workers  Social Man Theory Chester Barnard emphasized interactive social relationships y communication to stimulate subordinates y cooperation from personnel y placing importance on the effects of the external environment on the organization Emerged in the 1920s and dealt with the human aspects of organizations The Behavioral Approach What is important is how people in the workplace interact together *

The Behavioral Perspective

Behavioral Management investigators found that interactions between workers affected productivity-That human interactions should be used to positively influence production and productivity The Hawthorne Studies * Elton Mayo known as the Father of the Hawthorne Studies, identified the Hawthorne Effect * The Hawthorne Studies are significant because they demonstrated the important influence of human factors on worker productivity There were four major phases to the Hawthorne Studies: * The illumination experiments, * The relay assembly room experiments, * The interviewing program, * The bank wiring room studies The Hawthorne studies found that * employees will not work as fast as they can when being paid piece-rate wages * better lighting facility does not increase productivity * employees will perform to the level informally set by the group in order to be accepted by the group The Hawthorne studies led Mayo to conclude that individual and social relationships played a major role in shaping workers attitudes and behavior at work The Human Relations Movement * This Movement stemmed from the Hawthorne studies, and is based on the idea that a manager's concern for workers will lead to their increased satisfaction and improved performance * This movement includes the need theories of motivation, such as Maslow's hierarchy of needs, and McGregor's Theory X and Theory Y Behavioral Science Theorists were * engaged in objective research of human behavior in organizations * and they carefully attempted to keep their personal beliefs out of their work Behavioral Scientists focused on human behavior and the study of * * * * motivation, leadership, group dynamics, participative management

* Jacob Moreno created an analytical technique ---sociometry for studying group interactions * B. F. Skinner s research on operant conditioning and behavior modification had a significant effect on the design of organizational training programs and reward systems The work of Fred Fiedler on leadership emphasized the situational aspects of leadership and attempted to develop a comprehensive theory of leadership behavior Herzberg concluded that people preferred jobs that offered opportunities for recognition, achievement, responsibility and growth

MODEL I VALUES  Define your purpose then achieve it  Do everything you can to win  Restrain all negative emotions  Above all, be rational MODEL II VALUES  Give workers access to information  Allow them to design their work settings  Contribute creative ideas, express feelings and accept responsibility  Monitor the results of workers decision Management Science * Management science focuses specifically on the development of mathematical models which help organizations experiment with computers * Modeling helps managers identify the best way to do things, saving money and time * Operations Management is an applied form of management science that helps organizations develop techniques to produce their products and services more efficiently  seeks the services of a mixed team of scientists from many disciplines and uses scientific techniques such as Linear Programming, Critical Path Method, Game Theory, for providing a quantifiable base for managerial decisions The Quantitative Perspective Management Information System  Converts raw data into information and provides the needed information to each manager at the right time, in the needed form  Integrating Perspectives The Systems Approach  That nothing exists in a vacuum-- that each level of a company affects each other  And that each company exists in a system  And each system exists in a larger system Systems Theory A system is an interrelated set of elements functioning as a whole. An organization as a system is composed of four elements: = inputs (material or human resources) = transformation processes (technological and managerial processes) = outputs (products or services), and = Feedback (reactions from the environment)  The Nature of Systems A System in Interaction with its Environment  Organizations Described in Systems Terminology The Congruence Model Showing the Organization as a System The Contingency Approach  Evaluate your situation, select the best approach for that situation--- and make your personal style compatible with the approach Attempts to answer the questions- What actions work in what situations

 

How can one tell what situation one is in What is one s natural style?

Contingency View * Emphasizes the fit between organization processes and the characteristics of the situation * Calls for fitting the structure of the organization to various possible or chance events Contingency perspective argues that universal theories cannot be applied to organizations because each is unique  Modern Management Thought Contributors:  Peter Drucker - MBO  William Ouchi - Theory Z  Michael Porter - Competitive Strategy  Blake & Mouton - Managerial Grid  McKinsey s - 7-S Framework  Boston Consulting Group (BCG) - Matrix Peter Drucker - (Management by Objectives) - MBO * Objectives must be set in areas where performance affects the health of the organization * Emphasis on the philosophy of self-control and self-direction Theory Z (William Ouchi) Selected Japanese managerial practices if adapted to the United States work environment, would be beneficial  Interpersonal skills are needed in organizations, to manage groups and teams  Modern Management Thought Theory Z  Despite the emphasis on group decision making, responsibility remains with the individual People are seen as whole human beings, not simply as factors of production  Modern Management Thought Managerial Grid (Blake and Mouton) Five Forces Model (Michael Porter)