mp ob session 2_history
TRANSCRIPT
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The case we have just discussed , illustrates
many different comprehensive management
skill challenges that management at Burger
King to be successful, management mustcollectively apply insights from the classical,
behavioral, management science,
contingency, systems and learningorganisations.
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THE PRE-MODERN ERA
Ancient massive construction projects
Egyptian pyramids
Great Wall of China
Michelangelo the manager
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ADAM SMITHS CONTRIBUTION TO THE FIELD
OF MANAGEMENT
Wrote the Wealth of Nations(1776)
Advocated the economic advantages that
organizations and society would reap fromthe division of labor:
Increased productivity by increasing each
workers skill and dexterity.
Time saved that is commonly lost in changingtasks.
The creation of labor-saving inventions and
machinery.
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THE INDUSTRIAL REVOLUTIONS INFLUENCE
ON MANAGEMENT PRACTICES
Industrial revolution
Machine power began to substitute for
human powerLead 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
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CLASSICAL CONTRIBUTIONS
Classical approach
The term used to describe the hypotheses of the
scientific management theorists and the general
administrative theorists.Scientific management theorists
Fredrick W. Taylor, Frank and Lillian Gilbreth, and Henry
Gantt
General administrative theorists Henri Fayol and Max Weber
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SCIENTIFIC MANAGEMENT
Frederick W. Taylor
The Principles of Scientific Management (1911)
Advocated the use of the scientific method to define
the one best way for a job to be done
Believed that increased efficiency could be
achieved by selecting the right people for the job
and training them to do it precisely in the one
best way.
To motivate workers, he favored incentive wage
plans.
Separated managerial work from operative work.
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TAYLORS FOUR PRINCIPLES OF MANAGEMENT
Develop a science for each element of an individuals work, which
replaces the old rule-of-thumb method.
Scientifically select and then train, teach, and develop the worker.
(Previously, workers chose their own work and trained themselves as
best they could.)
Heartily cooperate with the workers so as to ensure that all work is done
in accordance with the principles of the science that has been
developed.
Divide work and responsibility almost equally between management andworkers. Management takes over all work for which it is better fitted than
the workers. (Previously, almost all the work and the greater part of the
responsibility were thrown upon the workers).
EXHIBIT HM1
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SCIENTIFIC MANAGEMENT CONTRIBUTORS
Frank and Lillian Gilbreth
Bricklaying efficiency improvements
Time and motion studies
Henry Gantt
Incentive compensation systems
Gantt chart for scheduling work operations
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FAYOLS FOURTEEN PRINCIPLES OF MANAGEMENT
Division of work
Authority
Discipline
Unity of command
Unity of direction
Subordination of the
individual
Remuneration
Centralization
Scalar chain
Order
Equity
Stability of tenure ofpersonnel
Initiative
Esprit de corps
EXHIBIT HM2
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WEBERS IDEAL BUREAUCRACY
Division of Labor
Authority Hierarchy
Formal Selection Formal Rules and Regulations
Career Orientation
EXHIBIT HM3
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HUMAN RESOURCES APPROACH
Robert Owen
Claimed that a concern for employees was
profitable for management and would relieve
human misery.
Hugo Munsterberg
Created the field of industrial psychologythe
scientific study of individuals at work to maximizetheir productivity and adjustment.
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HUMAN RESOURCES APPROACH
Mary Parker Follett
Recognized that organizations could be viewed
from the perspective of individual and group
behavior.
Chester Barnard
Saw organizations as social systems that require
human cooperation.Expressed his views in his book The Functions
of the Executive(1938).
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HUMAN RELATIONS MOVEMENT
Based on a belief in the importance of
employee satisfactiona satisfied worker
was believed to be a productive worker.
Advocates were concerned with making
management practices more humane.
Dale Carnegie
Abraham Maslow
Douglas McGregor
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THE PROCESS APPROACH
Management theory jungle (Harold Koontz)
The diversity of approaches to the study of
managementfunctions, quantitative emphasis,
human relations approacheseach offersomething to management theory, but many are
only managerial tools.
Planning, leading, and controlling activitiesare circular and continuous functions of
management.
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THE SYSTEMS APPROACH
Defines a system as a set of interrelated and
interdependent parts arranged in a manner
that produces a unified whole
Closed system : a system that is not influencedby and does not interact with its environment
Open system: a system that dynamically
interacts with its environmentStakeholders: any group that is affected by
organizational decisions and policies
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THE ORGANIZATION AND
ITS ENVIRONMENT
EXHIBIT HM4
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THE CONTINGENCY APPROACH
The situational approach to management
that replaces more simplistic systems and
integrates much of management theory
Four popular contingency variables
Organization size
Routineness of task technology
Environmental uncertainty
Individual differences
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Henri Fayol
(1841 - 1925)
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Henri Fayols Background
* Graduated from the National School of Mines in Saint
Etrenne in 1860
* After graduation he went to work and spent his entire
career at Commentry-Fourchamboult-Decazeville. He was
named managing director in 1888 and maintained that
position until he retired in 1918.
* He is credited with saving the company from bankruptcy
* During his career he lectured at Ecole Superievre de laGuerre
* In his retirement he established the Center of
Administrative Studies
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Fayols Big Contributions to Management
1) Universality of management: The same skillsare needed to manage a coal mine that are needed to
manage a hospital, post office, university, etc..
2) Management is a field in and of itself: There
were no schools of management prior to Henri Fayol!!!
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Fayols Principles of Management
Division of Labor Fayol Encouraged job specialization
while realizing that too narrow a focus lead to boredom and
falling production
Authority & Responsibility This is more than giving
and having orders followed. Fayol thought that authority
should derive from expertise, leadership skill, knowledge,
etc., and lead to a sincere commitment from subordinates
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Fayols Principles of Management
Centralization Fayol preferred a less centralized
management hierarchy. He didnt want decisions made
too far away from the problem
Unity of Direction Today we would call this
singleness of purpose
Initiative Employees should be able to act on their own
which spurs creativity and innovation
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Fayols Principles of Management
Equity employees should be treated fairly.
For personnel to be encouraged to carry out their
duties with all the devotion and loyalty of which theyare capable, they must be treated with respect for their
own sense of integrity, and equality results from the
combination of respect and justice
Order The arrangement of positions in the organization
should maximize efficiency and provide employees with career
opportunities
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Fayols Principles of Management
Discipline Managers need to enforce rules to
achieve company goals.
Remuneration of Personnel Fayol was an early supporter
of bonuses and profit sharing plans
Stability and tenure of employees Long-term
employees lead to better producing companies.
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Fayols Principles of Management
Subordination of Individual Interests to the
common interest Employees need to understand
how their performance affects the entire organization
Esprit de Corp Managers should develop a shared
feeling of devotion to a common cause
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PLANNING
LEADING
CONTROLLING ORGANIZING
Fayols Functions of Management
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SCIENTIFIC MANAGEMENT
Frederick W. Taylor
The Principles of Scientific Management (1911)
Advocated the use of the scientific method to define the one best
way for a job to be done
Believed that increased efficiency could be achieved by
selecting the right people for the job and training them to
do it precisely in the one best way.
To motivate workers, he favored incentive wage plans.
Separated managerial work from operative work.
.
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1. Develop a science for each element of anindividuals work, which replaces the old rule-of-thumb method.
2. Scientifically select and then train, teach, and
develop the worker. (Previously, workers chose theirown work and trained themselves as best theycould.)
.
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3. Heartily cooperate with the workers so as to ensure thatall work is done in accordance with the principles of thescience that has been developed.
4. Divide work and responsibility almost equally betweenmanagement and workers. Management takes over all
work for which it is better fitted than the workers.(Previously, almost all the work and the greater part ofthe responsibility were thrown upon the workers.)
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Common Criticisms of Henri Fayol
Taylors argument: Taylor thought that specialization was
the best form of management. He thought that each worker
did eight different things and that for each thing there should
be a supervisor. Fayol thought that each person should only
have one supervisor. Further, Fayol liked having teams dowork together and making their own decisions rather than
having a specialist do every little thing.
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Common Criticisms of Fayol
Modern Criticism: Fayol refused to purchase stock in his
own company because he felt it compromised his position
as the firms managing director. Today, managers are
expected to have their pay tied to stock because it is seen as
their job to increase shareholder wealth.
Fayol, also, wanted to board of directors and shareholders
to have limited power because he felt they were
incompetent. This is criticized by those today who demand
shareholder rights be increased.