ch 02 -- the evolution of management

7/24/2019 Ch 02 -- The Evolution of Management

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The Evolution/History of

Management Theory1


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Evolution of Management

Management as a practice Since men worked in groups (guilds) Ancient massive construction projects

Egyptian pyramids Great Wall of China

In India, evidences can be found in Arthashastra Management as a field of knowledge Industrial revolution (early 1800s) Machine power began to substitute for human power Lead to mass production of economical goods Improved and less costly transportation systems became available Created larger markets for goods Larger organizations developed to serve larger markets Created the need for formalized management practices

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The Evolution of Management TheoryAndrew Ure was one of

the worlds firstprofessors to teach

management principlesat Andersons College in

Glasgow.


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Evolution of Management4

Pre-classical contributors Robert Owen (1771-1858): advocated for living and working

conditions of workers, age for child labour, reduced hours, andsupplied meals

Charles Babbage (1792-1871): advanced technology, use ofScience and Maths to run the factories better. Work specializationand profit sharing

Henry R. Towne (1844-1924): management as a science and needfor development of management principles


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Contributions:

Efforts were fragmentary

Applied their efforts towards developing specific techniques orsolutions

Laid the groundwork for major management theories whichcame later

First introductorymanagement textbook

(Principles of Management,by George Terry) was

published in 1953.


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1 . S C I E N T I F I C M A N A G E M E N T

The systematic study of the relationships between people and tasks for thepurpose of redesigning the work process for higher efficiency.

Fredrick W. Taylor, The Gilbreths, Henry Laurence Gantt

2 . A D M I N I S T R A T I V E M A N A G E M E N T

The study of how to create an organizational structure that leads to highefficiency and effectiveness.

Henry Fayol, Max Weber, Chester Barnard, Herbert Simon

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Classical Approaches


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Scientific Management

Frederick Winslow Taylor (1856-1915) Father of scientific management

Wrote a bookPrinciples of scientific management in 1911

Observed prevalence of soldiering Hence, advocated systematic study of the relationships between

people and tasks to redesign the work for higher efficiency.

Principles of scientific management:1. Scientifically study each part of the job and develop best method

2. Scientifically select and train workers

3. Cooperate with workers to ensure that they use the propermethod

4. Divide work and responsibility among management and workers

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Taylors Scientific Management has Five basicfeatures:1. Organizational and technical improvements such as better

machine operations, cost accounting, purchasing, and stock

and tool room control2. A planning department for coordination of overall

operations and assignment of jobs

3. The use of Functional foremenwho were responsible for asingle functional activity within the manufacturing process

4. Time study to determine the rate at which a job should bedone

5. An incentive wage system


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Scientific Management in Practice9

Bethlehem Steel Plant With proper modification of

movements, tools andsequencing, productivity/person

improved from 12.5 tons to 47.5tons; incentive schemes broughtwage hike from $ 1.15 to $ 1.85.

Ford Motors

Henry Ford introduced theassembly line in the manufactureof his Model T Ford in 1913.


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Scientific Management (Contd)

Frank (1868-1924) and Lillian Gilbreth (1878-1972)

Refined Taylors methods

Bricklaying efficiency improvements

Time and motion studies (therbligs) to reduce unnecessary movements

in work (identified 17 basic hand motions) Break down each action into components.

Find better ways to perform it.

Reorganize each action to be more efficient.

Also studied fatigue problems, lighting, heating and other worker issues.

Lillian Gilbreth First lady of management

Lillian published Psychology of Management

Wrote a book Cheaper by the Dozen

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Scientific Management in Practice11

http://fullcomment.nationalpost.com/2012/10/26/alexandra-lange-on-lillian-gilbreth-the-woman-who-invented-the-kitchen/

Lillians contribution - The Kitchen Work Triangle
http://fullcomment.nationalpost.com/2012/10/26/alexandra-lange-on-lillian-gilbreth-the-woman-who-invented-the-kitchen/http://fullcomment.nationalpost.com/2012/10/26/alexandra-lange-on-lillian-gilbreth-the-woman-who-invented-the-kitchen/http://fullcomment.nationalpost.com/2012/10/26/alexandra-lange-on-lillian-gilbreth-the-woman-who-invented-the-kitchen/http://fullcomment.nationalpost.com/2012/10/26/alexandra-lange-on-lillian-gilbreth-the-woman-who-invented-the-kitchen/http://fullcomment.nationalpost.com/2012/10/26/alexandra-lange-on-lillian-gilbreth-the-woman-who-invented-the-kitchen/


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Scientific Management (Contd)

Henry L. Gantt (1861-1919) Gantt Chart a graphic aid to planning,

scheduling and control

Pay incentives (bonus for completing work inless time) for workers and supervisors

Gantt Chart helps display the results of thetime management activities:

Activity Definition: identifies activities whichthe group members need to complete; estimatedcompletion time, expected costs and resourcesneeded

Activity Sequencing:which order theactivities need to be completed in

Activity Duration Estimating: making aneducated guess as to how long each activity willtake

Schedule Development: create a schedules ofdeliverables, as to what documents are due at whattime

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Assignment13

Gantt Chart

Discuss with your own group and create a Gantt

Chart to map out your group project that is due atthe end of the semester

https://www.youtube.com/watch?v=TjxL_hQn5w0

Share your work me and with the class
https://www.youtube.com/watch?v=TjxL_hQn5w0https://www.youtube.com/watch?v=TjxL_hQn5w0https://www.youtube.com/watch?v=TjxL_hQn5w0https://www.youtube.com/watch?v=TjxL_hQn5w0


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Relevance???

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Efficiency is exploitation: The studies andtechniques developed by Taylor and Gilbrethsimply enabled employers to get more workout of their employees.


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Criticism to Scientific management

Managers often implemented only the increasedoutput side of Taylors plan.

They did not allow workers to share in increased output.

Specialized jobs became very boring, dull,monotonous.

Workers ended up distrusting Scientific Management.

Workers could purposely under-perform

Management responded with increased use of machines.

Read some of the debates between Upton Sinclair and Taylor

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Administrative Management

Henri Fayol (1841-1925)

Father of modernmanagement

Wrote Administration

Industrielle et Generale

Five managerial functions(Foresight/Planning,Organization, Command,

Coordination, Control) 14 General principles of

management

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Success of anenterprise largelydepends on theadministrativeability of its leaders

as opposed to theirtechnical abilities


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Fayols Fourteen Principles of Management

Division of work Authority and

Responsibility

Discipline

Unity of command

Unity of direction

Subordination of the

individual interests tothe general interest

Remuneration

Centralization

Scalar chain

Order

Equity

Stability of tenure ofpersonnel

Initiative Esprit de corps (Spirit

of Teamwork)


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Contd18

1. Division of work: This principle is the same as Adam Smith's'division of labour'. Specialisation increases output by makingemployees more efficient.

2. Authority: Managers must be able to give orders. Authoritygives them this right. Note that responsibility arises whereverauthority is exercised.

3. Discipline: Employees must obey and respect the rules thatgovern the organisation. Good discipline is the result of effectiveleadership, a clear understanding between management and

workers regarding the organisation's rules, and the judicious useof penalties for infractions of the rules.

4. Unity of command: Every employee should receive orders fromonly one superior.

5. Unity of direction: There should be a common goal or purposetowards which everyone should work.


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Contd19

6. Subordination of individual interests to the generalinterest: The interests of any one employee or group ofemployees should not take precedence over the interests of theorganisation as a whole.

7. Remuneration:Workers must be paid a fair wage for their

services.8. Centralisation: Centralisation refers to the degree to whichsubordinates are involved in decision making. Whether decisionmaking is centralised (to management) or decentralised (tosubordinates) is a question of proper proportion. The task is tofind the optimum degree of centralisation for each situation.

9. Scalar chain: The line of authority from top management tothe lowest ranks represents the scalar chain. Communicationsshould follow this chain. However, if following the chain createsdelays, cross-communications can be allowed if agreed to by allparties and superiors are kept informed.


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Contd20

10. Order: People and materials should be in the rightplace at the right time.

11. Equity: Managers should be kind and fair to theirsubordinates.

12. Stability of tenure of personnel: High employeeturnover is inefficient. Management should provideorderly personnel planning and ensure thatreplacements are available to fill vacancies.

13. Initiative: Employees who are allowed to originateand carry out plans will exert high levels of effort.

14. Esprit de corps: Promoting team spirit will buildharmony and unity within the organisation.


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Administrative Management

Max Weber (1864-1920)

Characteristics of an idealbureaucracy

1. Specialization/ Division of labor

2. Well-defined hierarchy

3. Formal selection

4. Career advancement based on merit

5. Formal rules and procedures6. Impersonality

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Bureaucracy isrequired to avoidnepotism and to

improverationality and

objectivity


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Contributions and Limitations of ClassicalManagement

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Contributions: (1) Laid the foundation for management theory

(2) Identified key processes, functions, and skills of

managers that are still important today

(3) Made management a valid subject of scientific inquiry

Limitations: (1) Best used in simple, stable organizations

(2) Provided universal procedures that are not appropriate

in all settings

(3) Most viewed employees as tools rather than asresources


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The study of how managers should behaveto mot ivate employees and encourage themto perform at h igh leve ls and be committedto the achievement of organizat ional goals .

Focuses on the way a manager shouldpersonal ly manage to mot ivate employees .

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Behavioral Science Approach


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Behavioral Science Approach24

Hugo Munsterberg (1863-1916) Father of Industrial Psychology

Scientific study of individuals at work to maximize theirproductivity and adjustment

Published Psychology and Industrial Efficiency in 1913

Most of today's selection techniques, employee training, jobdesign and motivation are based on his work

Psychologists could help industry in 3 major ways

Ensuring person-job fit Identifying best suitable conditions for work

Influencing employees behavior to comply to managementinterests


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Mary Parker Follett (1868-1933) Recognized that organizations could be viewed from the

perspective of individual and group behavior.

The worker knows the best way to improve the job.

If workers have the knowledge of the task, then they shouldcontrol the task.

Team dynamics and self-managing teams

Managers job is to harmonize and coordinate group efforts

Power as a cooperative concept (Constructive conflict)

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Chester I Barnard (1886-1961) Acceptance of Authority: Each individual possesses a

zone of indifference within which the individual is willing toaccept orders and directions without much question. Make sure that the order to show up to work on time is all about

organizational goals and productivity, rather than asking people whatthey do with their personal time.

Make each employees zone of indifference wider

Induce cooperation through incentives (monetary and

recognition), clearly formulated organizational objectives, andeffective communication.

Relevance?

Current interest in building co-operative workgroups, socialresponsibility can be traced back to his ideas.

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Bridged classical and humanresource viewpoints.The Functions of the

Executive in 1938


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Hawthorne Studies (Elton Mayo, Rothelisberger etc.) Group of studies conducted at the Hawthorne Works plant of the Western

Electric Company during 1924-1932 that provided new insights into groupnorms and behaviors

Changed the prevalent view of the time that people were no different thanmachines.

First set of studies (1924-27): illumination studies Worker productivity was measured at various levels of light illumination.

Researchers found that regardless of whether the light levels were raised or lowered, productivity rose.

Actually, it appears that the workers enjoyed the attention they received as part of the study and were moreproductive.

Second set of studies (1927-1933): relay assembly test room study Giving breaks, shortening working hour, giving food

Working in groups, feeling special boosted the productivity

Third set of studies (1931-1932): bank wiring observation room study To find out how payment incentives (individual vs. group wage plans) would affect productivity

Workers were more responsive to the social force of their peer groups

http://www.youtube.com/watch?v=W7RHjwmVGhs

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Role of social aspects on productivity : It was the socialsituations of the workers, not just the working conditions,that influenced behavior at work.

The experiments, procedures were highly criticized

Relevance??

Current organizational practices that owe their roots to

the Hawthorne studies include attitude surveys,employee counseling, management training,participative decision making, team basedcompensation systems


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Human Relations Movement Idea surfaced in early 20th Century

Focused on the notion that work was done by people

Based on a belief in the importance of employee satisfactiona

satisfied worker was believed to be a productive worker. Need to focus on human element

Dale Carnege (1888-1955): How to win friends and influencepeople (1936)

Abraham Maslow (1908-1970): Hierarchy of needs theory

Douglas McGregor (1906-1964): Theory X and Theory Y

Common thread was optimism about peoples capabilities

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Douglas McGregor proposed the two different sets ofworker assumptions.

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Theory X

Assumes the average worker islazy, dislikes work and will doas little as possible.

Managers must closelysupervise and control

through reward andpunishment.

Theory Y

Assumes workers are not lazy,want to do a good job and thejob itself will determine if theworker likes the work.

Managers should allow the

worker great latitude, andcreate an organization tostimulate the worker.


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An approach to management th at uses

r igorous quanti tat ive techniques tomaximize the use of organizat ionalresources .

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Management Science Approach


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Management Science/ The Quantitative Approach

Evolved out of the development of mathematical andstatistical solutions to military problems during World

War II.

Uses rigorous quantitative techniques to maximize

resources. Quantitative management: utilizes linear programming, modeling,

simulation systems.

Operations management: techniques to analyze all aspects of the

production system. Total Quality Management (TQM): focuses on improved quality.

Management Information Systems (MIS): provides informationabout the organization.

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The set of forces and conditions that operate

beyond an organizations boundaries but affect amanagers ability to acquire and utilize resources.

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Organizational Environment

Theory


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Systems Approach: views organizations as systems. System A set of interrelated and interdependent parts arranged in a manner that

produces a unified whole Open and closed systems

Open system A system that takes resources for its external environment and converts them into goods

and services that are then sent back to that environment for purchase by customers. Inputs: the acquisition of external resources. Conversion: the processing of inputs into goods and services. Output: the release of finished goods into the environment.

Closed system A system that is self-contained and thus not affected by changes occurring in its external

environment.

Often undergoes entropy and loses its ability to control itself, and fails. Synergy

Performance that results when individuals and departments coordinate their actions Performance gains of the whole surpass the sum of the performance of the individual

components.

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The Organization as an Open System


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Contingency Approach The organization and how its managers should manage it are contingent on

the companys environment and on technology Assumes there is no one best way to manage.

The environment impacts the organization and managers must be flexible to react toenvironmental changes.

The way the organization is designed, control systems selected, depend on the environment.

Four popular contingency variables Organization size Routineness of task technology Environmental uncertainty Individual differences

Tom Burns and G. M. Stalker Mechanistic Organizations: Authority is centralized at the top (Theory X) Employees closely monitored and managed. Very efficient in a stable environment.

Organic Organizations: Authority is decentralized throughout employees. (Theory Y) Much looser control than mechanistic. Managers can react quickly to changing environment.

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Management theory jungle (Harold Koontz) The diversity of approaches to the study of management

functions, quantitative emphasis, human relationsapproacheseach offer something to management theory, butmany are only managerial tools.

Planning, leading, and controlling activities arecircular and continuous functions of management.

So, broadly three integrativeframeworks/approaches to understand Management Process

Systems

Contingency

ch 02 -- the evolution of management

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