MAN1006: Introduction to Management(Groups~BBA1G-I)

Lecture 2 – The Evolution of ManagementLecturer: Oswy Gayle

Wednesday September 3, 2008

University of Technology, JamaicaSchool of Business Administration

Recap From Last Week

studentofsoba@yahoo.comsoba2010

The Changing Dynamics of Organizations

• Pace continues to accelerate

• Change is major source of business risk

Driving Forces•Telecommunications•Diversity of Workers•Public consciousness•Global marketplace•Community of stakeholders

Driving Forces•Telecommunications•Diversity of Workers•Public consciousness•Global marketplace•Community of stakeholders

The Changing Dynamics of Management

• Google launched its own Web browser

• 78% of Internet Users use Microsoft

• Competition for Microsoft

• Korean Government Bank to take over a US Bank (Testing the waters)

What is management?• The effective and efficient attainment

of organizational goals through planning, organizing, leading and controlling organizational resources.

• The “process” through which the goals of the organization are achieved

So what are we saying?So what are we saying?

Successful organizations don’t just happen... ….they are managed to be that way!

• Pace continues to accelerate

• Change is major source of business risk• Four Functions of Management

• Ten (10) Management Roles• Three (3) Skills - Human ,

Conceptual and Technical

• Levels of Management – Line,

middle and top management

• Four Functions of Management

• Ten (10) Management Roles• Three (3) Skills - Human ,

Conceptual and Technical

• Levels of Management – Line,

middle and top management

Lecture 2 – The Evolution of Management -

Wednesday September 3, 2008

1. Understand how historical forces influence the practice of management

2. Major developments in the history of management thought

3. Components of the classical and humanistic perspectives

4. Look at the management science perspective

5. A look at the systems theory, the contingency view and total quality management

6. The learning organization and the technology driven workplace

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So, how did historical forces influenced the

practice of management ?

Historical Perspective

• Provides a context of environment (opportunities and Problems)

• Develops an understanding of societal impact• Achieves strategic thinking

• Improves conceptual skills

What influences management thought?

1. Social – aspects of culture that guides our behaviour (Generation X and Y)

2. Political –influence of politics and legal institutions

• Economic – availability, production and distribution of resources (now about ideas, information and knowledge)

Management Perspectives Over Time – The Story

1930Humanistic Perspective

19901890Classical 1940

1950

2000Systems Theory

2000

2010The Technology-Driven Workplace

1990

2010The Learning Organization

1970Contingency Views

2000

1980Total Quality Management

2000

1940Management Science Perspective

1990

20101870

The Story before the Story

• Garden of Eden

• 3000 B.C.E – Sumerians and Egyptians - The first government organizations

Theories and Perspectives that contributed to the Field of Management

• A. Classical Perspective

• B. Humanistic Perspective

• C. Management Science Perspective

The Development of Management Thought

A. Classical Theory – formal study of management began here

1800s• Industrial revolution (Europe)– The railways led to

economic change • Factory System (From Craftsmen to Machines)• Problems in the factory - tooling, training, structures, • Managers forced to find solutions• View Organization as a machine – efficiency –

bureaucracy,

Why England/Europe?

• First, up to 1800 most of the world was relatively even in terms of per capita income

• 1820 – The biggest gap of economic growth

– British society was relatively open

– Political liberty

– Became the leading centre for scientific revolution

– Geographical advantage to the rest of Europe

Classical Theory - Three sub-fields

1. Scientific Management - Frederick W. Taylor (1856-1915) • - emphasized scientific changes in management to improve

labor productivity (efficiency and effectiveness).

• Develops standards for a job, selects workers with appropriate abilities, trains workers, supports workers and eliminates interruptions, and provides wage incentives. (more tons per day)

• Because scientific management ignored the social context and workers’ needs, it led to increased conflict and clashes between management and employees.

1. Scientific ManagementContributions• Demonstrated the importance of compensation for performance.• Initiated the careful study of tasks and jobs.• Demonstrated the importance of personnel 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

2. Bureaucratic Organizations

• A systematic approach developed in Europe that looked at the organization as a whole

• Max Weber (1864-1920) - introduced management on an impersonal, rational basis through defined authority and responsibility, formal recordkeeping, and separation of management and ownership.

• Weber’s organization was the bureaucracy: division of labor, hierarchy, rules and procedures, written decisions and promotion based on technical qualifications

3. Administrative principles

Contributors - Henri Fayol, Mary Parker, and Chester I. Barnard

•Henri Fayol (1841-1925) - Focused on the total organization rather than the individual worker, define the management functions of planning, organizing, commanding (Leading), coordinating, and controlling.

•Mary Parker - Importance of common super-ordinate goals for reducing conflict in organizations and leadership

•Chester I. Barnard - Informal Organization; employees were not machines and that informal relationships are powerful forces that can help the organization.

Management Perspectives Over Time – The Story

1930Humanistic Perspective

19901890Classical 1940

1950

2000Systems Theory

2000

2010The Technology-Driven Workplace

1990

2010The Learning Organization

1970Contingency Views

2000

1980Total Quality Management

2000

1940Management Science Perspective

1990

20101870

The Development of Management –

B. Humanistic Theory

Emphasized understanding human behavior, needs, and attitudes in the workplace

1. Human Relations Movement - Emphasized satisfaction of employees’ basic needs as the key to increased worker productivity

2. Human Resources Perspective - Suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential (Abraham Maslow & Douglas McGregory)

3. Behavioral Sciences Approach - Applies social science in an organizational context; Draws from economics, psychology, sociology, anthropology, and other disciplines;

Physiological

Safety

Belongingness

Esteem

Self-actualization

Abraham Maslow’s Hierarchy of Needs

Based on needs satisfaction

1908-1970

Chapter 16 – Maslow in more detail

• Dislike work –will avoid it

• Must be coerced, controlled, directed, or threatened with punishment

• Prefer direction, avoid responsibility, little ambition, want security

• Do not dislike work• Self direction and self control• Seek responsibility• Imagination, creativity widely

distributed• Intellectual potential only

partially utilized

Douglas McGregor Theory

X & YTheory X Assumptions Theory Y Assumptions

1906-1964

Management Perspectives Over Time – The Story

1930Humanistic Perspective

19901890Classical 1940

1950

2000Systems Theory

2000

2010The Technology-Driven Workplace

1990

2010The Learning Organization

1970Contingency Views

2000

1980Total Quality Management

2000

1940Management Science Perspective

1990

20101870

3. Management Science Perspective• Emerged after WW II• Applied mathematics, statistics, and other quantitative

techniques to managerial problemsOperations Research – mathematical modeling

Operations Management – specializes in physical production of goods or services

Information Technology – reflected in management information systems

Recent Historical Trends

● Systems Theory

● Contingency View

● Total Quality Management (TQM)

Systems View of Organizations

Exhibit 2.5, p. 58

Contingency View of Management

Exhibit 2.6, p. 59

Successful resolution of organizational problems is thought to depend on managers’ identification of key variations in the situation at hand

Elements of a Learning Organization

Learning Organization

Open Information

Empowered Employees

Team-Based Structure

Exhibit 2.7, p. 61

Types of E-Commerce

Business-to-Consumer B2C Selling Products and

Services Online

Business-to-Business B2B Transactions Between

Organizations

Consumer-to-Consumer C2C Electronic Markets

Created by Web-Based Intermediaries

Exhibit 2.8, p. 63