Presentation on theme: "EVOLUTION OF MANAGEMENT"— Presentation transcript:
1EVOLUTION OF MANAGEMENT MANAGEMENT YESTERDAY AND TODAY
2Studying history is a way to achieve strategic thinking, see the big picture and improve conceptual skills.Social, political and economic forces have influenced organizations and the practice of management.1) Social forcesRefer to those aspects of a culture that guide and influence relationships among people.2) Political forcesRefer to the influence of political and legal institutions on people and organizations.3) Economic forcesPertain to the availability, production and distribution of resources in a society.
3Management Perspectives over Time 1) Classical PerspectiveScientific ManagementBureaucratic OrganizationAdministrative Principles2) Humanistic PerspectiveHuman Relations MovementHuman Resources PerspectiveBehavioral Sciences Approach3) Management Science Perspective4) Systems Theory5) Contingency View6) Total Quality Management7) The Learning Organization8) The Technology-Driven Workplace
4Classical Perspective The earliest study of managementEmerged during the nineteenth and early twentieth centuriesContains 3 subfields, each with a slightly different emphasis:1) Scientific management2) Bureaucratic organizations3) Administrative principles
51) Scientific Management Scientific Management: emphasized the scientific study of work methods to improve the productivity of individual workersTwo of its chief proponents were Frederick W. Taylor, & Frank and Lillian Gilbreth
8Characteristic of Scientific Management General ApproachDeveloped standard method for performing each jobSelected workers with appropriate abilities for each jobTrained workers in standards methodsSupported workers by planning their work and eliminating interruptionsProvide wage incentives to workers for increased output.
9Contributions Criticism Demonstrated the importance of compensation for performanceInitiated the careful study of tasks and jobsDemonstrated the importance of personnel selection and trainingCriticismDid not appreciate the social context of work and higher needs of workersDid not acknowledge variance among individualsTended to regard workers as uninformed and ignored their ideas and suggestions
10Scientific management theory arose in part from the need to increase productivity. 2. In the united states especially, skilled labor was in short supply at the beginning of the twentieth century.3. The only way to expand the productivity was to raise the efficiency of workers.4. Therefore ,Fredick W.Taylor,Henry Gantt,and Frank and Lillian Gilberth devised the body of principles known as Scientific management theory
112) Bureaucracy Organizations To Weber, a bureaucracy was a rational, efficient ideal organization based on principles of logic—he felt good organizations should have six bureaucratic features:Positions organized in a hierarchy of authorityManagers subject to rules and procedures that will ensure reliable predictable behaviorManagement separate from the ownership of organizationAdministrative acts and decisions recorded in writingPersonnel selected and promoted based on technical qualificationsDivision of labor, with clear definitions of authority and responsibility.
123) Administrative Management Administrative Management: concerned with managing the total organizationAmong the pioneering theorists were Henry Fayol & Max Weber
13Henry Fayol and the Functions of Management Henry Fayol was the first to systematize management behavior – he was the first to identify the major functions of management: planning, organizing, leading, controlling, as well as coordinating and commanding.Management philosophy:Unity of command – Each subordinate receives orders from one – and only one – superiorDivision of work – Managerial and technical work are amenable to specialization to produce more and better work with the same amount of effort.Unity of Direction – Similar activities in an organization should be grouped together under one manager.Scalar chain – A chain of authority extends from the top to the bottom of the organization and should include every employee.
14Humanistic Perspective Emphasized the importance of understanding human behaviors, needs and attitudes in the workplace as well as social interactions and group processes.
151) The Human Relations Movement Proposed that better human relations couldincrease worker productivity.One of the earliest to study motivation, Maslowproposed his “hierarchy of human needs” in1943.
172) Human Resources Perspective Maintained an interest in worker participation and considerate leadership but shifted the emphasis to consider the daily tasks that people perform.Combines prescriptions for design of job tasks with theories of motivation.This will allow workers to use their full potential.
18Y Theory X Theory Y Pessimistic negative view towards workers Workers are irresponsibleWorkers are resistant to changeWorkers lack ambition, hate to workWorkers would rather be led than leadOptimistic positive view of workers: human relations proponents’ viewWorkers are capable of accepting responsibilityWorkers are capable of self-directionWorkers are capable of self-controlWorkers are capable of being imaginative and creative
193) Behavioral Science Approach Behavioral Science relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers.Behavioral Science draws from sociology, psychology, anthropology, economics and other disciplines to understand employee behavior and interaction in an organizational setting.
20Management Science Perspective Management Science focuses on using mathematics to aid in problem solving and decision making.Suitable for large scale business firms.Example: forecasting, inventory modeling, linear and nonlinear programming, scheduling and break-even analysis.
21Recent Historical Trends There are 2 recent trends that grew out of the humanistic perspective:1) Systems Theory2)Contingency View
22The Systems TheoryThe Systems Theory regards the organization as a system of interrelated partsBy adopting this perspective you can look at your organization in two waysA collection of subsystems—parts making up the whole systemA part of the larger environment
23environment Transformational Process Input Output The organization’s capabilities in management and technology that are applied to converting inputs to outputsExample: Designer’s management skills (planning, organizing, leading, controlling) gold and silver smithing tools and expertise, website for marketingInputThe people, money, information, equipment and materials required to produce and organization’s goods or servicesExample: For a jewelry designer- designer money, artistic talent, gold and silver tools, marketing expertiseOutputThe products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organizationExample: Gold and silver rings, bracelets, etc.FeedbackInformation about the reaction of the environment to the outputs that affect the inputsExample: Web customers like Africa style designs, dislike imitation Old English designs
24Open and Closed Systems Open System continually interacts with its environmentClosed System has little interaction with its environment; it receives very little feedback from the outside
25The Contingency ViewThe Contingency View emphasizes that a manager’s approach should vary according to—that is, be contingent on—the individual and the environmental situationAlso 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.
26QuestionBased on your experience at work or school, describe some ways in which the principles of scientific management and bureaucracy are still used in organizations. Do you believe these characteristics will ever cease to be a part of organizational life? Discuss.