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    Chapter 2

    MANAGEMENT

    YESTERDAYAND TODAY

    Prentice Hall, 2002 2-2- 11

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    You should learn to:

    Discuss managements relationship to otheracademic ields o stud! E"plain the #alue o stud!ing management histor!

    $denti ! some ma%or pre&t'entieth&centur!contri(utions to management Summari)e the contri(utions o the scienti ic

    management ad#ocates Descri(e the contri(utions o the general

    administrati#e theorists

    *earning O(%ecti#es

    Prentice Hall, 2002 2-2- 22

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    *earning O(%ecti#es +cont ,-You should learn to:

    Summari)e the .uantitati#e approach tomanagement Descri(e the contri(utions o the earl!

    organi)ational (eha#ior ad#ocates E"plain the importance o the /a'thorne Studies

    to management Descri(e the e ects o : glo(ali)ation0 'or1 orce

    di#ersit!0 entrepreneurship0 e&(usiness0 le"i(ilit!and inno#ation0 .ualit! management0 learningorgani)ations0 and 'or1place spiritualit!

    Prentice Hall, 2002 2-2- 33

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    Managements 2onnection To Other 3ieldsAcademic Disciplines that A ected Management

    Anthropology & 'or1 on cultures and socialen#ironments

    Economics & concern a(out the allocation anddistri(ution o scarce resources

    Philosophy & e"amines the nature o things Political science & e ect o political en#ironment on

    indi#iduals and groups Psychology & see1s to measure0 e"plain0 and change

    human (eha#ior Sociology & studies people in relation to their ello'

    human (eings

    Prentice Hall, 2002 2-2- 44

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    De#elopment O Ma%or Management Theories

    HistoricalBackground Scientific

    anage!ent"eneral

    #d!inistrati$e

    %heorists

    &uantitati$e#pproach

    Management Theories

    'ndustrial(e$olution

    #da! S!ith

    )arl* #d$ocates

    Ha+thorne Studies

    rgani ationalBeha$ior

    Prentice Hall, 2002 2-2- ..

    )arl* )/a!plesof anage!ent

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    /istorical 4ac1ground O ManagementOrgani)ations /a#e E"isted or Thousands o Years

    testi ies to the e"istence o earl! management practice5 a(ilit! to create the 6!ramids0 Great 7all o 2hina

    Signi icant 6re&T'entieth&2entur! E#ents

    Wealth of Nations & Adam Smith5 division of labor & (rea1do'n o %o(s into narro' and

    repetiti#e tas1s increased producti#it! Industrial Revolution

    5 su(stitution o machine po'er or human po'er 5 large organi)ations re.uired ormal management

    Prentice Hall, 2002 2-2-

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    Scienti ic Management3,7, Ta!lor & 6rinciples o Scienti ic Management

    use o scienti ic methods to de ine the 8one (est 'a!9 ora %o( to (e done

    perspecti#e o impro#ing the producti#it! and e icienc!o manual 'or1ers

    applied the scienti ic method to shop loor %o(s3ran1 and *illian Gil(reth

    use o motion pictures to stud! hand&and&(od!mo#ements

    microchronometer therbligs & classi ication s!stem or ; (asic hand

    motions

    Prentice Hall, 2002 2-2-

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    ER 6R$N2$6*ES O3 MANAGEMENT

    Prentice Hall, 2002 2-2-

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    General Administrati#e Theorists/enri 3a!ol

    concerned 'ith ma1ing the o#erall organi)ation moree ecti#e

    de#eloped theories o 'hat constituted goodmanagement practice5 proposed a uni#ersal set o management unctions5 pu(lished principles of management

    undamental0 teacha(le rules o management

    Prentice Hall, 2002 2-2-

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    E

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    General Administrati#e Theorists +cont,-Ma" 7e(er

    de#eloped a theor! o authorit! structures and relations Bureaucracy & ideal t!pe o organi)ation5di#ision o la(or

    5clearl! de ined hierarch!5detailed rules and regulations5 impersonal relationships

    Prentice Hall, 2002 2-2- 1111

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    EREA>2RA2Y

    Prentice Hall, 2002 2-2- 1212

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    uantitati#e Approach To ManagementOperations Research +Management Science-

    use o .uantitati#e techni.ues to impro#e decision ma1ing5applications o statistics5optimi)ation models5computer simulations o management acti#ities

    Linear programming & impro#es resource allocation decisions ritical!path scheduling analysis & impro#es 'or1 scheduling

    Prentice Hall, 2002 2-2- 1313

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    To'ard >nderstanding Organi)ational 4eha#ior Organi)ational 4eha#ior

    stud! o the actions o people at 'or1

    earl! ad#ocates5 late BCCs and earl! CCs5 (elie#ed that people 'ere the most important asset o the organi)ation5 ideas pro#ided the (asis or a #ariet! o human resource management programs

    emplo!ee selection emplo!ee moti#ation

    Prentice Hall, 2002 2-2- 1414

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    E

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    /a'thorne Studies started in =@ at 7estern Electric 2ompan!

    5 (egan 'ith illumination studies5 intensit! o illumination not related to producti#it!

    Elton "ayo & studies o %o( design

    5re#ealed the importance o social norms as determinants oindi#idual 'or1 (eha#ior

    changed the dominant #ie' that emplo!ees 'ere no di erentrom an! other machines

    Organi)ational 4eha#ior +cont,-

    Prentice Hall, 2002 2-2- 11

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    2urrent Trends And $ssuesGlo(ali)ation

    all organi)ations are aced 'ith the opportunities andchallenges o operating in a glo(al mar1et

    5 no longer constrained (! national (orders

    7or1 orce Di#ersit! heterogeneous 'or1 orce in terms o gender0 race0

    ethnicit!0 and age5 'or1 orce is getting older 5 Asians and /ispanics are an increasingl! large percentage o 'or1 orce

    # melting pot$ approach #ersus celebration ofdifferences

    Prentice Hall, 2002 2-2- 11

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    2urrent Trends And $ssues +cont,-Entrepreneurship

    three important themes5 pursuit of opportunities & capitali)ing on en#ironmental

    change to create #alue5 innovation & introducing ne' approaches to satis !

    un ul illed mar1et needs5 gro%th & not content to remain small 'ill continue to (e important in all societies 'ill in luence pro it and not& or&pro it organi)ations

    Prentice Hall, 2002 2-2- 11

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    2urrent Trends And $ssues +cont,-Managing in an E&4usiness 7orld

    E!commerce & an! orm o (usiness e"change or transactionin 'hich parties interact electronicall!

    E!business & comprehensi#e term descri(ing the 'a! anorgani)ation does its 'or1 (! using electronic +$nternet&

    (ased- lin1ages 'ith 1e! constituencies

    5 ma! include e&commerce5 three categories re lect di erent degrees o in#ol#ement in

    e&(usiness intranet & an internal organi)ational communication s!stem

    that uses $nternet technolog! and is accessi(le onl! (!organi)ational emplo!ees

    Prentice Hall, 2002 2-2- 11

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    T!pes o E&2ommerce Transactions

    E&2ommerce4usiness&to&2onsumer

    +4=2-Electronic retailing

    Go#ernment&to&4usiness+G=4-

    All transactions (et'eencompanies and

    go#ernment agencies

    4usiness&to&4usiness

    +4=4-All transactions (et'een acompan! and its suppliers

    2onsumer&to&2onsumer +G=2-

    Electronic mar1ets ormed (! 7e(&(ased auctions

    Prentice Hall, 2002 2-2- 2020

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    2ategories o E&4usiness $n#ol#ement

    E&(usiness units'ithin

    traditional

    organi)ation

    E&(usiness&enhancedOrgani)ation

    E&(usiness toolsand applications

    used 'ithin tradi&tional organi)ation

    E&(usiness&ena(ledOrgani)ation

    Organi)ations entire 'or1 processes re#ol#e around

    e&(usiness model

    Prentice Hall, 2002 2-2- 2121

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    2urrent Trends And $ssues +cont,- Need or $nno#ation and 3le"i(ilit!

    'ithout a constant lo' o ne' ideas0 an organi)ation isdoomed to o(solescence or e#en 'orse

    must (e le"i(le to accommodate changing customersneeds0 appearance o ne' competitors0 and shi tingemplo!ees rom pro%ect to pro%ect

    ualit! Management &otal 'uality "anagement (&'") & philosoph! o

    management (ased on continual impro#ement and

    responding to customer needs and e"pectations customer & re ers to internal and e"ternal entities thatinteract 'ith the organi)ations product or ser#ice

    Prentice Hall, 2002 2-2- 2222

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    E

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    2urrent Trends And $ssues +cont,-*earning Organi)ations and Hno'ledge Management

    learning organi*ation & one that has de#eloped thecapacit! to continuousl! learn0 adapt0 and change

    create learning capa(ilities throughout the organi)ation5 understanding that 1no'ledge is an important resource

    +no%ledge management & in#ol#es culti#ating a learningculture 'here organi)ational mem(ers s!stematicall!gather 1no'ledge and share it 'ith others in theorgani)ation so as to achie#e (etter per ormance

    managers must trans orm themsel#es rom (osses to teamleaders5 learn to listen0 moti#ate0 coach0 and nurture

    Prentice Hall, 2002 2-2- 2424

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    ES TRAD$T$ONA* ORGAN$IAT$ON

    Prentice Hall, 2002 2-2- 2.2.

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    2urrent Trends And $ssues +cont,-7or1place Spiritualit!

    8a recognition o an inner li e that nourishes and isnourished (! meaning ul 'or1 that ta1es place inthe conte"t o communit!9

    gro'ing interest in spiritualit! at 'or1 (! 'or1ersat all le#els and in all areas o organi)ations5emplo!ees loo1ing or meaning0 purpose0 and a

    sense o connectedness or communit! rom

    their 'or1 and their 'or1place uncertaint! in (usiness en#ironment contri(utes tointerest in 'or1place spiritualit!

    Prentice Hall, 2002 2-2- 22