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Presentation on theme: "EVOLUTION OF MANAGEMENT"— Presentation transcript:


2 Studying 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 forces Refer to those aspects of a culture that guide and influence relationships among people. 2) Political forces Refer to the influence of political and legal institutions on people and organizations. 3) Economic forces Pertain to the availability, production and distribution of resources in a society.

3 Management Perspectives over Time
1) Classical Perspective Scientific Management Bureaucratic Organization Administrative Principles 2) Humanistic Perspective Human Relations Movement Human Resources Perspective Behavioral Sciences Approach 3) Management Science Perspective 4) Systems Theory 5) Contingency View 6) Total Quality Management 7) The Learning Organization 8) The Technology-Driven Workplace

4 Classical Perspective
The earliest study of management Emerged during the nineteenth and early twentieth centuries Contains 3 subfields, each with a slightly different emphasis: 1) Scientific management 2) Bureaucratic organizations 3) Administrative principles

5 1) Scientific Management
Scientific Management: emphasized the scientific study of work methods to improve the productivity of individual workers Two of its chief proponents were Frederick W. Taylor, & Frank and Lillian Gilbreth

6 Frederick W. Taylor The “father” of scientific management
The theory of scientific management Using 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. Copyright © 2005 Prentice Hall, Inc. All rights reserved.

7 Management Today How Do Today’s Managers Use Scientific Management?
Use time and motion studies to increase productivity Hire the best qualified employees Design incentive systems based on output Copyright © 2005 Prentice Hall, Inc. All rights reserved.

8 Characteristic of Scientific Management
General Approach Developed standard method for performing each job Selected workers with appropriate abilities for each job Trained workers in standards methods Supported workers by planning their work and eliminating interruptions Provide wage incentives to workers for increased output.

9 Contributions Criticism
Demonstrated the importance of compensation for performance Initiated the careful study of tasks and jobs Demonstrated the importance of personnel selection and training Criticism Did not appreciate the 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 and suggestions

10 Scientific 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

11 2) 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 authority Managers subject to rules and procedures that will ensure reliable predictable behavior Management separate from the ownership of organization Administrative acts and decisions recorded in writing Personnel selected and promoted based on technical qualifications Division of labor, with clear definitions of authority and responsibility.

12 3) Administrative Management
Administrative Management: concerned with managing the total organization Among the pioneering theorists were Henry Fayol & Max Weber

13 Henry 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 – superior Division 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.

14 Humanistic Perspective
Emphasized the importance of understanding human behaviors, needs and attitudes in the workplace as well as social interactions and group processes.

15 1) The Human Relations Movement
Proposed that better human relations could increase worker productivity. One of the earliest to study motivation, Maslow proposed his “hierarchy of human needs” in 1943.

16 Maslow’s Hierarchy of Needs

17 2) 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.

18 Y Theory X Theory Y Pessimistic negative view towards workers
Workers are irresponsible Workers are resistant to change Workers lack ambition, hate to work Workers would rather be led than lead Optimistic positive view of workers: human relations proponents’ view Workers are capable of accepting responsibility Workers are capable of self-direction Workers are capable of self-control Workers are capable of being imaginative and creative

19 3) 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.

20 Management 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.

21 Recent Historical Trends
There are 2 recent trends that grew out of the humanistic perspective: 1) Systems Theory 2)Contingency View

22 The Systems Theory The Systems Theory regards the organization as a system of interrelated parts By adopting this perspective you can look at your organization in two ways A collection of subsystems—parts making up the whole system A part of the larger environment

23 environment Transformational Process Input Output
The organization’s capabilities in management and technology that are applied to converting inputs to outputs Example: Designer’s management skills (planning, organizing, leading, controlling) gold and silver smithing tools and expertise, website for marketing Input The people, money, information, equipment and materials required to produce and organization’s goods or services Example: For a jewelry designer- designer money, artistic talent, gold and silver tools, marketing expertise Output The products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by the organization Example: Gold and silver rings, bracelets, etc. Feedback Information about the reaction of the environment to the outputs that affect the inputs Example: Web customers like Africa style designs, dislike imitation Old English designs

24 Open and Closed Systems
Open System continually interacts with its environment Closed System has little interaction with its environment; it receives very little feedback from the outside

25 The Contingency View The Contingency View emphasizes that a manager’s approach should vary according to—that is, be contingent on—the individual and the environmental situation Also 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.

26 Question Based 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.


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