Presentation on theme: "Lecture 2 Management Theories"— Presentation transcript:
1 Lecture 2 Management Theories Historical background of management中国古代管理理论简介Scientific managementGeneral administrative theoristsQuantitative approach to managementOrganizational behaviorThe Systems ApproachThe Contingency ApproachCurrent trends and issues（自学）
2 L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter Historical Background of ManagementExplain why studying management history is important.Describe some early evidences of management practice.Scientific ManagementDescribe the important contributions made by Fredrick W. Taylor and Frank and Lillian Gilbreth.Explain how today’s managers use scientific management.
3 Learning Outcomes2 General Administrative Theorists • Discuss Fayol’s 14 management principles.• Describe Max Weber’s contribution to the generaladministrative theory of management.• Explain how today’s managers use general administrative theory.Quantitative Approach to Management• Explain what the quantitative approach has contributed to the field of management.• Discuss how today’s managers use the quantitativeapproach.
4 Learning Outcomes3 Toward Understanding Organizational Behavior Describe the contributions of the early advocates of OB.Explain the contributions of the Hawthorne Studies to the field of management.Discuss how today’s managers use the behavioral approach.The Systems ApproachDescribe an organization using the systems approach.Discuss how the systems approach helps us management.
5 Learning Outcomes4 The Contingency Approach Current Issues and Trends Explain how the contingency approach differs from the early theories of management.Discuss how the contingency approach helps us understand management.Current Issues and TrendsExplain why we need to look at the current trends and issues facing managers.Describe the current trends and issues facing managers.
6 Historical Background of Management1 Egyptian pyramids, The great wall, Venice cityManagement achieved a lot in our history, how can we succeed to them and leave more miracles for our future generations?
7 Chinese Ancient Viewpoints on Management中国古代管理思想 儒家管理思想道家管理思想法家以及兵家管理思想
19 Historical Background of Management2---Western viewpoints on management Adam Smith: division of labor can increase the productivityIndustrial Revolution: machine power take the place of human power, and which call for the new way of management .
20 经济学之父：亚当 斯密之代表作： 国富论：营生者的自利行为 道德情操论(The Theory of Moral Sentiments)：贵族的利他观点－同情 关系：它是理性、道义、良心、心中的 那个居民、内心的那个人、判断我们行为的伟大的法官和仲裁人。〈第三卷 第三章〉强迫著人们尽管在自利的状况下，还能维持公利的要求。
21 1.Adam Smith’s Contribution to the Field of Management The general popularity today of job specialization is undoubtedly due to Smith’s view about division of labor.Division of labor is the breakdown of jobs into narrow, repetitive tasks, which increasing each worker’s skill and dexterity, saving time lost in changing tasks, and by creating inventions and machinery.
22 2.Industrial Revolution’s Influence on Management Practices Industrial Revolution has originated in late-18th-century Great Britain, and crossed the Atlantic to America by the end of the Civil War.Because of the Industrial Revolution, machine power was rapidly substituted for human power, which made it economical to manufacture goods in factories.With the development of big organizations, a formal theory to guide managers running these organizations efficiently and effectively was needed.
23 Background of That Time There were no clear concepts of responsibilities to workers and managers.No effective work standards existed.Management decisions were based on hunch and intuition.Workers were placed on jobs with little or no concern for matching their abilities and aptitudes with the tasks required.Managers and workers considered themselves to be in continual conflict—any gain by one would be at the expense of the other.
24 Exhibit 2–1 Development of Major Management Theories
25 Major Approaches to Management Scientific ManagementGeneral Administrative TheoryQuantitative ManagementOrganizational BehaviorSystems ApproachContingency Approach
26 Scientific Management Fredrick Winslow TaylorThe “father” of scientific managementPublished Principles of Scientific Management (1911)The theory of scientific managementUsing scientific methods to define the “one best way” for a job to be done:Putting the right person on the job with the correct tools and equipment.Having a standardized method of doing the job.Providing an economic incentive to the worker.
29 Scientific Management Contributions of F.W. Taylor– define the “one best way” for doing each job– select appropriate workers and train them doing their jobs by one best way– introduce economic incentive system in order to motivate workers result– improvements in productivity in the range of 200 percent
31 Scientific Management (cont’d) Frank and Lillian GilbrethFocused on increasing worker productivity through the reduction of wasted motionDeveloped the microchronometer to time worker motions and optimize work performanceHow Do Today’s Managers Use Scientific Management?Use time and motion studies to increase productivityHire the best qualified employeesDesign incentive systems based on output
34 General Administrative Management Henri Fayol– developed theories of what constituted good management practice• described the practice of management as distinct from other typical business functions• proposed a universal set of management functions– 14 principles of management• fundamental or universal rules of management• applied in all organizational situations
36 General Administrative Management Believed that the practice of management was distinct from other organizational functionsDeveloped fourteen principles of management that applied to all organizational situations
39 Weber’s Ideal Bureaucracy Max Weber– developed a theory of authority structures and relations– Bureaucracy - ideal type of organizationDeveloped a theory of authority based on an ideal type of organization (bureaucracy)Emphasized rationality(理性）, predictability（可预见性）, impersonality（客观）, technical competence（专业能力）, and authoritarianism（专制）
41 Quantitative Approach Also called operations research or management scienceEvolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problemsFocuses on improving managerial decision making by applying:Statistics, optimization models, information models, and computer simulations
42 Quantitative Approach To Management How to use– this approach has contributed most directly to managerial decision making, particularly in planning and controlling-Linear programming-Critical-path scheduling analysis– the application of computer software programsmade it possible to use quantitative techniques for managers
43 Understanding Organizational Behavior Organizational Behavior (OB)The study of the actions of people at work; people are the most important asset of an organizationEarly OB AdvocatesRobert OwenHugo MunsterbergMary Parker FollettChester Barnard
46 Organizational Behavior The Hawthorne Studies– A series of productivity experiments conducted at Western Electric from 1927 to 1932.Experimental findingsProductivity unexpectedly increased under imposed adverse working conditions.The effect of incentive plans was less than expected.Research conclusionSocial norms, group standards and attitudes more strongly influence individual output and work behavior than do monetary incentives.
48 The Systems Approach System Defined Basic Types of Systems A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.Basic Types of SystemsClosed systemsAre not influenced by and do not interact with their environment (all system input and output is internal).Open systemsDynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.
50 Implications of the Systems Approach Coordination of the organization’s parts is essential for proper functioning of the entire organization.Decisions and actions taken in one area of the organization will have an effect in other areas of the organization.Organizations are not self-contained and, therefore, must adapt to changes in their external environment.
52 The Contingency Approach Contingency Approach DefinedAlso sometimes called the situational approach.There is no one universally applicable set of management principles (rules) by which to manage organizations.Organizations are individually different, face different situations (contingency variables), and require different ways of managing.
53 Exhibit 2–7 Popular Contingency Variables Organization sizeAs size increases, so do the problems of coordination.Routineness of task technologyRoutine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or nonroutine technologies.Environmental uncertaintyWhat works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment.Individual differencesIndividuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations.
57 Current Trends and Issues Globalization– all organizations are faced with the opportunities and challenges of operating in a global market• no longer constrained by national bordersWorkforce DiversityIncreasing heterogeneity in the workforceMore gender, minority, ethnic, and other forms of diversity in employeesAging workforceOlder employees who work longer and do not retireThe increased costs of public and private benefits for older workersAn increasing demand for products and services related to aging.
58 Current Trends and Issues EthicsWhat is the ethical dilemma?Who are the affected stakeholders?What personal, organizational, and external factors are important to my decision?What are possible alternatives?Make a decision and act on it.
59 Current Trends and Issues Entrepreneurship– the process whereby an individual or a group of individuals uses organized efforts and means to pursue opportunities to create value and grow by fulfilling wants and needs through innovation and uniqueness, no matter what resources are currently controlledEntrepreneurship process• pursuit of opportunities - pursuing environmental trends and changes that no one else has seen or paid attention to• innovation - changing, revolutionizing, transforming, and introducing products or services or new ways of doing business• growth - Desire for continual growth of the organization– will continue to be important in all societies– will influence profit and not-for-profit organizations
60 Current Trends and Issues Managing in an E-Business World– E-business - comprehensive term describing the way an organization does its work by using electronic (Internet-based) linkages with key constituencies(支持者）• may include e-commerce three categories reflect different degrees of involvement in e-business– E-commerce – sales and marketing component of e-business– intranet - an internal organizational communication system that uses Internet technology and is accessible only by organizational employees
63 Current Trends and Issues Learning Organizations and Knowledge ManagementKnowledge Management– The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance.Learning Organization– An organization that has developed the capacity to continuously learn, adapt, and change.managers must transform themselves from bosses to team leaders• learn to listen, motivate, coach, and nurture（扶持）
64 Exhibit 2–10 Learning Organization versus Traditional Organization
65 Current Trends and Issues Quality ManagementA philosophy of management driven by continual improvement in the quality of work processes and responding to customer needs and expectationsInspired by the total quality management (TQM) ideas of Deming and JuranQuality is not directly related to costPoor quality results in lower productivity
66 Exhibit 2–11 What is Quality Management? Intense focus on the customer.Concern for continual improvementProcess-focused.Improvement in the quality of everything.Accurate measurement.Empowerment of employees.
68 Practices What’s the Taylor’s four principles of management? What’s the 14-principles of management?What’s the Mayo’s Finding?What are current trends and issues?
69 DiscussionInformation is power—those who have it have power. 1 Should employees have to share this knowledge when they themselves have worked to gain it?2 Should they have to share this knowledge when, perhaps, their performance evaluations are based on how well they do their jobs, and how well they do their jobs is dependent on their special knowledge?3 What ethical implications can be expected when a manager strives to create an organizational environment that promotes learning and knowledge sharing?